This site uses cookies for analytics, personalized content and ads. By continuing to browse this site, you agree to this use of cookies in accordance with our Cookie Policy.

The CAQ publishes a monthly Public Policy and Technical Alert (PPTA), which highlights and examines the regulatory, standard-setting, legislative, and broader financial reporting developments impacting the public company audit profession. This alert is designed to keep member firms and other stakeholders updated on significant public policy and accounting matters.

View the most recent edition of the PPTA newsletter below, and scroll down for older editions of the newsletter.

Subscribe today

Sign up now to receive the Public Policy & Technical Alert newsletter monthly to your inbox.

Please note that the PPTA is intended as general information and should not be relied upon as being definitive or all-inclusive. The CAQ encourages member firms to refer to the rules, standards, guidance, and other resources in their entirety at the hyperlinks provided below. All entities should carefully evaluate which requirements apply to their respective organizations.

October 2022

SEC

SEC reopens comment periods for several rulemaking releases due to technological error in receiving certain comments

The SEC reopened the public comment periods for 11 Commission rulemaking releases and one request for comment due to a technological error that resulted in a number of public comments submitted through the Commission’s Internet comment form not being received by the Commission. The SEC is reopening the comment periods for the affected releases until 14 days following publication of the reopening release in the Federal Register. Affected releases include, but are not limited to:

  • Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure, Release Nos. 33-11038, 34-94382, IC-34529 (Mar. 23, 2022)
  • The Enhancement and Standardization of Climate-Related Disclosures for Investors Release Nos. 33-11042, 34-94478 (Apr. 11, 2022)
  • Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices, Release Nos. 33-11068, 34-94985, IA-6034, IC-34594 (June 17, 2022)

The auditor’s responsibility for fraud detection

The SEC posted a statement by acting chief accountant Paul Munter on the auditor’s responsibility for fraud detection. Munter reminded auditors to fulfill their professional responsibilities by applying an appropriate fraud lens throughout the audit, including understanding the relationship between PCAOB AS 2401 and other auditing standards as it relates to identifying and responding to the risk of fraud in the audit so that the auditor has obtained reasonable assurance that there is not a material misstatement to the financial statements caused either by fraud or error.

SEC adopts rule amendments to modernize how broker-dealers preserve electronic records and enhance the electronic recordkeeping requirements for security-based swap entities

The SEC voted to adopt amendments to the electronic recordkeeping, prompt production of records, and third-party recordkeeping service requirements applicable to broker-dealers, security-based swap dealers (SBSDs), and major security-based swap participants (MSBSPs). The amendments are designed to modernize recordkeeping requirements given technological changes over the last two decades and to make the rule adaptable to new technologies in electronic recordkeeping. The amendments will also facilitate examinations of broker-dealers, SBSDs, and MSBSPs. Among other things, to facilitate examinations and make them more efficient, the amendments also require broker-dealers and all types of SBSDs and MSBSPs to produce electronic records to securities regulators in a reasonably usable electronic format.

SEC adopts listing standards for recovery of erroneously awarded compensation

The SEC adopted a new rule and rule amendments that direct the national securities exchanges and associations that list securities to establish listing standards that require each issuer to develop and implement a policy providing for the recovery, in the event of a required accounting restatement, of incentive-based compensation received by current or former executive officers where that compensation is based on the erroneously reported financial information. The listing standards must also require the disclosure of the policy.

PCAOB

PCAOB Investor Advisory Group (IAG) Meeting

The PCAOB IAG met to discuss in a public forum the following topics: recent PCAOB developments, the PCAOB standard-setting update, firm and engagement performance metrics, an IAG briefing to the PCAOB on data and technology, and emerging issues.

The PCAOB updates its standard-setting and research agendas to reflect progress on a key strategic goal of modernizing standards

The PCAOB updated its standard-setting and research agendas to reflect progress on a key strategic goal of modernizing standards. The standard-setting agenda is primarily focused on enhancing investor protection by prioritizing the areas where improvements to PCAOB standards could have the most significant impact on audit quality and the public interest. The standard-setting projects are divided into short-term and mid-term categories and are presented in no particular order within such categories.

Barbara Vanich named PCAOB Chief Auditor

The PCAOB announced the appointment of Barbara Vanich as Chief Auditor. Vanich has led the Office of the Chief Auditor in an acting capacity since November 2020.

FASB

FASB seeks input on proposal to improve segment reporting

The FASB issued a proposed Accounting Standards Update (ASU) that would improve the disclosures about a public entity’s reportable segments and address requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. Stakeholders are encouraged to review and provide comments on the proposed ASU by December 20, 2022. Key amendments in the proposed ASU would:

  • Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss.
  • Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition.
  • Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280, Segment Reporting, in interim periods.

FASB seeks input on proposed new chapter of its Conceptual Framework: The reporting entity

The FASB issued a proposed new chapter of its Conceptual Framework that describes a reporting entity. The proposed chapter would become Chapter 2 of FASB Concepts Statement No. 8, Conceptual Framework for Financial Reporting. Stakeholders are asked to provide input on the characteristics of a reporting entity described in the proposed chapter. This includes a description of a reporting entity as “a circumscribed area of economic activities that can be represented by general purpose financial reports that are useful to existing and potential investors, lenders, and other resource providers in making decisions about providing resources to the entity.” It also describes the three features of a reporting entity:

  • Economic activities of the entity have been conducted.
  • Those economic activities can be distinguished from those of other entities.
  • The financial information in general purpose financial reporting faithfully represents the economic activities of the entity in the circumscribed area and is useful in making decisions about providing resources to the entity.

FASB seeks input on proposed improvements to accounting for joint venture formations

The FASB issued a proposed Accounting Standards Update (ASU) that is intended to provide investors and other allocators of capital with more decision-useful information in a joint venture’s separate financial statements, and reduce diversity in practice in this area of financial reporting. Stakeholders are encouraged to review and provide comments on the proposed ASU by December 27, 2022. The proposed ASU would apply to the formation of entities that meet the definition of a joint venture (or a corporate joint venture) as defined in the FASB Accounting Standards Codification Master Glossary.

AICPA

AICPA & CIMA offer resources for organizations requiring an audit of Covid relief funding

AICPA & CIMA announced that they are offering several resources to help organizations subject to “single audits” or similar compliance engagements, including a list of tips, an on-demand webinar, and a primer on procuring audit services, in an effort to help demystify the process. Thousands of state and local governmental agencies, nonprofits, and businesses that received funding from federal pandemic relief programs are subject to audits that focus on their compliance with laws and regulations governing that money. Before the pandemic, some 34,000 to 38,000 single audit engagements were performed each year, but the trillions of dollars authorized for Covid relief funding are expected to significantly increase that number.

Exposure draft, criteria for quality control materials (QCM) content

The AICPA Assurance Services Executive Committee (ASEC) issued an Exposure Draft titled, Proposed Criteria for a Description of the Content of Quality Control Materials (QCM) and the Content of QCM Related to the Relevant Standards and Interpretive Guidance. Interested parties may submit comments by Dec.15. The proposed criteria will be used to evaluate QCM content in a new assertion-based examination to be performed under the Statements on Standards for Attestation Engagements (SSAEs). Although not required, a QCM provider may engage a practitioner to examine its QCM content (examination) as it relates to the relevant standards and interpretive guidance. The examination will help CPA firms that use QCM, and their peer reviewers, address the risks associated with the use of QCM and monitor their practices.

International

System of quality management call to action: Strengthening audit quality

The Canadian Public Accountability Board released a publication that highlights the importance of culture to a firm’s system of quality management, provides the Board’s preliminary observations on the implementation of the new quality management standards, and offers an illustrative example to demonstrate the identification of quality risks and iterative nature of a firm’s system of quality management. The Board has observed that firms frequently underestimate the amount of time and effort necessary to design, implement, and operate an effective system of quality management. This publication is intended to assist audit firms as they implement their system of quality management to comply with the new quality management standards.

IESBA staff issues alert highlighting key ethics and independence considerations for professional accountants in relation to the military conflict in Ukraine

The International Ethics Standards Board for Accountants released the Staff Alert, The Ukraine Conflict: Key Ethics and Independence Considerations, which draws the attention of professional accountants in business (PAIBs) and professional accountants in public practice (PAPPs) to important provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) as they navigate the challenges and risks arising from the Russia-Ukraine war. The Staff Alert highlights the ethical implications arising from the various economic sanctions that have been imposed on Russia and certain Russian entities and individuals as well as Belarus, and the related ethical responsibilities of PAIBs and PAPPs under the Code. It also highlights:

  • Key ethics considerations for PAIBs in relation to the preparation and presentation of information, especially as regards accounting for and disclosing the impact of the Ukraine conflict on their employing organizations’ business; and
  • Key ethics considerations for PAPPs in relation to client and engagement acceptance, and in the context of audits of financial statements, key independence considerations relating to overdue fees and the Code’s prohibition against assuming management responsibility.

G7 reiterates commitment to mandatory climate disclosures and welcomes the ISSB’s work on global baseline

The International Sustainability Standards Board (ISSB) posted a statement by the G7 Finance Ministers and Central Bank Governors that reiterates their commitment to move towards mandatory climate-related financial disclosures. The G7 Finance Ministers and Central Bank Governors welcome the ISSB’s work to develop a truly global baseline of sustainability disclosures to inform investment decisions. The ISSB is currently considering the feedback received to its consultation on its first two proposed IFRS Sustainability Disclosure Standards, one setting out general sustainability-related disclosure requirements and one setting out specific climate-related disclosure requirements.

IESBA issues staff publication highlighting the relevance and applicability of the IESBA Code in combating greenwashing

The staff of the IESBA released a Questions & Answers (Q&A) publication, Ethics Considerations in Sustainability Reporting, Including Guidance to Address Concerns about Greenwashing. The publication highlights the relevance and applicability of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to ethics-related challenges in the context of sustainability reporting and assurance, especially circumstances involving misleading or false sustainability information (i.e., “greenwashing”). Among other matters, the publication spotlights key provisions in the Code that apply in preparing and presenting sustainability information. The publication is intended to assist professional accountants, especially those in business, but might also be of interest to other professionals involved in preparing sustainability reports or disclosures.

IAASB opens public consultation for Revised Audit Evidence Standard

The IAASB announced that it has opened the public consultation for proposed changes to one of its fundamental standards, International Standard on Auditing (ISA) 500, Audit Evidence. The proposed changes:

  • Clarify ISA 500’s purpose and scope and explain its relationship with other standards;
  • Provide a principles-based approach to considering and making judgments about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
  • Modernize ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor’s use of technology, such as automated tools and techniques; and
  • Emphasize the role of professional skepticism when making judgments about information intended to be used as audit evidence and evaluating the audit evidence obtained.

IASB adds narrow-scope project to work plan on possible amendments to financial instruments Accounting Standard

The IASB expanded the scope of its maintenance project on the work plan for proposed narrow-scope amendments to IFRS 9 Financial Instruments. The aim of the proposed amendments is to respond to stakeholders’ feedback on the Request for Information published in September 2021 as part of the Post-implementation Review of IFRS 9-Classification and Measurement. The proposed amendments will cover three areas:

  • Contractual cash flow characteristics
  • Electronic cash transfers, and
  • Equity instruments and other comprehensive income

FRC publishes Annual Review of Corporate Reporting

The FRC published its Annual Review of Corporate Reporting, which performed 252 reviews of companies’ accounts. While the overall quality of corporate reporting within the FTSE 350 had been maintained, 27 companies were required to restate aspects of their accounts. The FRC was disappointed to find errors in cash flow statements, an area where both companies and their auditors must improve. The review also identified scope for improvement in reporting on financial instruments and deferred tax assets. The review includes examples of key matters companies must consider during uncertain times such as the need to disclose significant judgements in relation to going concern assessments.

IASB amends accounting standard to improve information about long-term debt with covenants

The IASB issued amendments to IAS 1 Presentation of Financial Statements that aim to improve the information companies provide about long-term debt with covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid settling the debt in the 12 months after the reporting date. The amendments to IAS 1 specify that covenants to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for annual reporting periods beginning on or after January 1, 2024, with early adoption permitted.

CAQ

S&P 500 ESG reporting

The CAQ posted an analysis of 2020 ESG reports and Carbon Disclosure Project (CDP) Climate Change Questionnaires for S&P 500 companies. The CAQ sought to understand what they disclosed about reporting standards and frameworks used, greenhouse gas (GHG) emissions, assurance or verification of ESG information, and net zero and carbon neutral commitments. Among the key takeaways:

  • Of the S&P 500 companies, 464 issued a standalone ESG report and 313 responded to the CDP Climate Change Questionnaire for the 2020 period (i.e., periods ending in 2020).
  • Of the 464 companies that issued a standalone ESG report, 43 obtained assurance from a public company auditor over some of their ESG information.
  • CAQ found an uptick in companies receiving assurance over ESG metrics compared to the prior analysis.

How do auditors maintain independence?

The CAQ posted a report on how auditors maintain independence. The report discusses the three key elements of safeguards that incentivize audit firms and individual auditors to keep an independent mindset and perform high-quality audits:

  • A robust regulatory regime
  • Oversight of the external auditor, and
  • Market-driven incentives

The report notes that amendments of certain rules by the SEC in 2021 to reflect changes in the business environment have strengthened the rules. There are many safeguards that protect auditor independence, with the robust U.S. regulatory regime being just one piece, the report concludes. Oversight of the external auditor coupled with market-driven incentives provide confidence to investors in the system that works to maintain auditor independence.

Auditor independence

The CAQ posted a statement on auditor independence. The passage of the Sarbanes-Oxley Act of 2002 (SOX) implemented reforms that brought about undeniable improvements to financial reporting, the audit process, and audit quality. Since then, the auditing profession has also invested in innovative approaches and mechanisms to foster accountability and safeguard against potential conflicts, from the education of auditors to firms’ best practices and controls. Although there are detailed rules and extensive investments to comply, there are still criticisms of the current model of auditor independence. These criticisms fail to consider the vital components – both imposed by regulation and voluntarily enacted – that safeguard the independence of auditors.

PCAOB: The Application and Use of the PCAOB’s Interim Attestation Standards

The CAQ posted a PDF of its comment letter providing views to the PCAOB related to its request for information and comment on The Application and Use of the PCAOB’s Interim Attestation Standards. The CAQ provides insight into the limited use of the PCAOB Interim Attestation Standards and indicates that it does not believe the PCAOB needs to prioritize any updates to these standards. However, if the PCAOB were to decide to update these interim attestation standards, the CAQ believes that the public interest would be best served by the PCAOB considering many of the significant areas for which the equivalent AICPA attestation standards have been updated over the last 20 years, as such an approach could provide a timely and effective path forward for the PCAOB.

Recent PPTA newsletters

October 2022

In this issue:

  • SEC reopens comment periods for several rulemaking releases due to technological error in receiving certain comments
  • The auditor’s responsibility for fraud detection
  • SEC adopts rule amendments to modernize how broker-dealers preserve electronic records and enhance the electronic recordkeeping requirements for security-based swap entities
  • SEC adopts listing standards for recovery of erroneously awarded compensation
  • PCAOB Investor Advisory Group (IAG) Meeting
  • The PCAOB updates its standard-setting and research agendas to reflect progress on a key strategic goal of modernizing standards
  • Barbara Vanich named PCAOB Chief Auditor
  • FASB seeks input on proposal to improve segment reporting
  • FASB seeks input on proposed new chapter of its Conceptual Framework: The reporting entity
  • FASB seeks input on proposed improvements to accounting for joint venture formations
  • AICPA & CIMA offer resources for organizations requiring an audit of Covid relief funding
  • Exposure draft, criteria for quality control materials (QCM) content
  • System of quality management call to action: Strengthening audit quality
  • IESBA staff issues alert highlighting key ethics and independence considerations for professional accountants in relation to the military conflict in Ukraine
  • G7 reiterates commitment to mandatory climate disclosures and welcomes the ISSB’s work on global baseline
  • IESBA issues staff publication highlighting the relevance and applicability of the IESBA Code in combating greenwashing
  • IAASB opens public consultation for Revised Audit Evidence Standard
  • IASB adds narrow-scope project to work plan on possible amendments to financial instruments Accounting Standard
  • FRC publishes Annual Review of Corporate Reporting
  • IASB amends accounting standard to improve information about long-term debt with covenants
  • S&P 500 ESG reporting
  • How do auditors maintain independence?
  • Auditor independence
  • PCAOB: The Application and Use of the PCAOB’s Interim Attestation Standards

Read the newsletter

September 2022

In this issue:

  • Audit quality and investor protection under the Holding Foreign Companies Accountable Act
  • SEC Division of Corporation Finance to add industry offices focused on crypto assets and industrial applications and services
  • Inflation Adjustments Under Title I and III of the JOBS Act
  • PCAOB staff requests information and comment on application and use of the PCAOB’s interim attestation standards
  • FASB issues standard to enhance transparency around supplier finance programs
  • IASB publishes proposals to update its Accounting Standard for small and medium-sized entities
  • Now available: IESBA handbook 2022 edition
  • IOSCO encourages standard-setters’ work on assurance of sustainability-related corporate reporting
  • IASB issues narrow-scope amendments to requirements for sale and leaseback transactions
  • Taskforce on Disclosures about Expected Credit Losses (DECL) updated guidance
  • Revisions to ISA (UK) 600 Special Considerations: Audits of group financial statements (Revised September 2022)
  • JICPA and IESBA staff issue joint guidance illustrating application of IESBA Code to technology-related scenarios
  • UKEB report on Subsequent Measurement of Goodwill: A Hybrid Model published
  • S&P 500 10-K Analysis
  • The Center for Audit Quality and EVERFI announce national high school curriculum designed to attract more diversity into the accounting profession
  • CAQ submits comment letter to the PCAOB related to its Draft 2022-2026 PCAOB Strategic Plan
  • CAQ submits comment letter to the SEC related to its Draft 2022-2026 Strategic Plan

Read the newsletter

August 2022

In this issue:

  • SEC appoints Anthony C. Thompson to second term on PCAOB
  • SEC publishes draft FY22-26 strategic plan for public comment
  • SEC adopts pay versus performance disclosure rules
  • SEC Updated Questions and Answers (Q&A) for Compliance and Disclosure Interpretations (C&DI) of Rule 14a-19
  • Auditor independence and ethical responsibilities: Critical points to consider when contemplating an audit firm restructuring
  • PCAOB seeks public comment on five-year strategic plan for protecting investors
  • The PCAOB releases 2022 audit committee resource
  • The PCAOB issues annual report on inspections of broker-dealer audits
  • PCAOB signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the People’s Republic of China
  • The PCAOB provides 2021 observations from the target team, a group of inspectors who focus on emerging audit risks and topics
  • FASB issues 2022 Investor Outreach Report
  • SEC accepts 2022 Q3 Supplemental GAAP Taxonomy
  • FASB seeks input on proposal to improve accounting for investments in tax credit structures
  • More companies obtaining ESG assurance, according to global survey
  • Embrace fluidity and remove the risks of remote audits
  • IAASB issues new frequently asked questions for reporting going concern matters in the auditor’s report
  • IFRS Foundation completes consolidation with Value Reporting Foundation
  • FRC publishes recommendations to improve digital security disclosure
  • FRC publishes snapshots of current practice in auditor reporting
  • Better ESG data drives more impactful decision-making by companies
  • CAQ Symposium 2022
  • Pop-up conversation with Rep. Brad Sherman (D-Calif.) and Mark Baer of Crowe
  • LinkedIn Live | Audit partner observations: The economy, corporate reporting and more

Read the newsletter

July 2022

In this issue:

  • Jaime Lizarraga sworn in as SEC Commissioner
  • Comment on the Financial Accounting Foundation Draft Strategic Plan
  • Prepared remarks at Center for Audit Quality ‘Sarbanes-Oxley at 20: The Work Ahead’
  • PCAOB Chair Williams remarks on 20th anniversary of Sarbanes-Oxley Act and establishment of the PCAOB
  • FASB proposes to improve certain transition requirements in long-duration insurance guidance
  • AICPA solicits feedback on CPA Exam Exposure Draft
  • Jeremy Osborn appointed AICPA & CIMA’s lead on ESG
  • Artificial intelligence is a game changer for auditors
  • Assurance in the Digital Age
  • IAASB proposes narrow scope amendments to operationalize changes to the IESBA Code that enhance transparency about independence
  • IOSCO published its Crypto-Asset Roadmap for 2022-2023
  • IESBA staff releases Q&As to spotlight key changes to the non-assurance services provisions of the IESBA Code
  • FRC sets out next steps in transition to new regulator
  • FRC seeks assurances from audit firms and professional bodies on exams cheating
  • Spearheading change to enhance confidence in audits and assurance
  • FRC publishes latest audit quality review results
  • New implementation guide available for identifying and assessing the risks of material misstatement in an audit of financial statements
  • International Accounting Standards Board (IASB) sets out its 2022-2026 priorities
  • Audit Partner Pulse Survey, Q2 2022
  • BlackRock’s Dalia Blass, EY’s Julie Boland appointed to CAQ Governing Board
  • Financial Accounting Foundation: Strategic Plan Draft for Public Comment
  • SOX: The Evolution of Corporate Reporting
  • International Sustainability Standards Board: IFRS S1 and S2 for public comment

Read the newsletter

June 2022

In this issue:

  • The critical importance of the general standard of auditor independence and an ethical culture for the accounting profession
  • SEC Division of Corporation Finance updates Compliance and Disclosure Interpretations (CD&Is)
  • SEC announces spring 2022 regulatory agenda
  • SEC adopts rules to require electronic filing for investment advisers and institutional investment managers
  • Mark T. Uyeda sworn in as SEC Commissioner
  • Saba Qamar named Investor Advocate at the PCAOB
  • PCAOB adopts new requirements for lead auditor’s use of other auditors
  • PCAOB issues Spotlight providing staff overview for planned 2022 inspections
  • Financial Accounting Foundation (FAF) issues 2021 annual report
  • FASB publishes its 2021 Agenda Consultation Report
  • FASB issues standard to improve fair value guidance for equity securities
  • Auditors staying focused on quality management
  • Tom Seidenstein reappointed as IAASB chair
  • IFIAR comments on the IESBA Proposed Exposure Draft on Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits
  • IFRS Foundation Trustees appoint four further members to the International Sustainability Standards Board (ISSB)
  • IESBA commits to readying global ethics and independence standards timely in support of sustainability reporting and assurance
  • IAASB Digital Technology Market Scan: Natural language processing
  • IFRS Foundation and Value Reporting Foundation (VRF) vote to approve consolidation from July 1
  • FRC seeks stakeholders’ views on publicly available audit quality indicators to drive audit quality improvements
  • FRC publishes first of its kind professional judgement guidance for auditors
  • International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI) provide update on ongoing collaboration
  • PCAOB: Estimates and specialists post-implementation review
  • CAQ comments on SEC climate disclosure rule proposal, supports objectives but identifies needed changes

Read the newsletter

May 2022

In this issue:

  • Sample letter to companies regarding disclosures pertaining to Russia’s invasion of Ukraine and related supply chain issues
  • SEC extends comment period for proposed rules on climate-related disclosures
  • Resolving the lack of audit transparency in China and Hong Kong: Remarks at the International Council of Securities Associations annual general meeting
  • SEC proposes to enhance disclosures by certain investment advisers and investment companies about environmental, social, and governance (ESG) investment practices
  • SEC posts meeting agenda for investor advisory committee meeting
  • The future of auditing
  • PCAOB updates standard-setting and research agendas
  • PCAOB announces members of new advisory groups, sets dates for first meetings
  • Q&A: Accounting standard setters serve the public interest
  • New IAASB fact sheet addresses engagement team definition
  • Accountancy Europe issues factsheet on audit quality indicators: a global overview of initiatives
  • IAASB issues new non-authoritative guidance on fraud in an audit of financial statements
  • IESBA staff releases benchmarking report comparing the international independence standards with US SEC and PCAOB independence standards
  • Path to global baseline: International Sustainable Standards Board (ISSB) outlines actions required to deliver global baseline of sustainability disclosures
  • Watch now – IESBA discussion on sustainability and ethics
  • Updated international standards on auditing
  • FRC publishes inspection key findings and good practices
  • FRC welcomes government plans to bring forward audit and corporate governance reforms
  • NABA, Inc. and CAQ form strategic partnership to build pipeline for historically Black colleges and universities (HBCUs)
  • SEC: Cybersecurity risk management, strategy, governance, and incident disclosure

Read the newsletter

April 2022

In this issue:

  • Statement from the Chair: “Working on ‘team cyber’”
  • PCAOB requests comment on the impact of auditing requirements related to estimates and specialists
  • Jackie Cottrell to depart as director of the PCAOB’s Office of External Affairs
  • PCAOB 2021 annual report
  • FASB proposes updates to reference rate reform guidance
  • How high-quality audits protect the public interest and propel businesses forward
  • Great audit methodologies can enhance your data analytics
  • IFRS Foundation publishes 2021 annual report
  • FRC publishes 3-Year Plan takes further steps towards ARGA
  • IAASB 2022-2023 work plan approved by the Public Interest Oversight Board
  • IAASB modernizes its standard for group audits in support of audit quality
  • IESBA expands universe of entities that are public interest entities
  • Looking beyond 2023: IESBA calls for stakeholder input on future strategy
  • IFIAR 2021 Annual Report
  • IOSCO releases report on issues and considerations of market data in secondary equity markets
  • IFAC releases new implementation tool for auditors

Read the newsletter

March 2022

In this issue:

  • SEC proposes rules on cybersecurity risk management, strategy, governance, and incident disclosure by public companies
  • Statement from the Acting Chief Accountant: Assessing materiality: Focusing on the reasonable investor when evaluating errors
  • SEC proposes rules to enhance and standardize climate-related disclosures for investors
  • SEC Division of Corporation Finance updates CD&Is
  • SEC proposes rules to enhance disclosure and investor protection relating to special purpose acquisition companies, shell companies, and projections
  • SEC publishes Staff Accounting Bulletin No. 121 related to crypto-assets
  • PCAOB releases Spotlight on the use of a service provider in the confirmation process
  • PCAOB shares perspective from 2021 Conversations With Audit Committee Chairs
  • PCAOB adopts charters for its two new advisory groups
  • PCAOB highlights key considerations for auditors related to the Russian invasion of Ukraine
  • SEC accepts 2022 GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy
  • FASB improves and expands hedge accounting
  • FASB expands disclosures and improves accounting related to the credit losses standard
  • IESBA Technology Experts Group members appointed
  • IAASB Digital Technology Market Scan: Artificial intelligence A Primer
  • IOSCO explains how decentralized finance is cloning financial markets
  • IFRS Foundation publishes IFRS Accounting Taxonomy 2022
  • IFIAR releases 2021 report on annual survey of audit inspection findings
  • ISSB delivers proposals that create comprehensive global baseline of sustainability disclosures
  • ISSB communicates plans to build on SASB’s industry-based Standards and leverage SASB’s industry-based approach to standards development
  • AICPA & CIMA announce suspension of services in Russia and Belarus
  • Putting CPAs in TPAs
  • The value of an effective vendor risk management program
  • Demonstrating the value of public company auditors
  • CAQ alert 2022-01: Addendum to November 6, 2021 International Practices Task Force Document for Discussion: Monitoring Inflation in Certain Countries

Read the newsletter

February 2022

In this issue:

  • Statement from the Acting Chief Accountant on the FASB’s agenda consultation: Engagement with investors and other stakeholders vital to development of high quality accounting standards
  • Nominations open for qualified candidates to join IESBA as board members
  • FRC: Guidance – auditor climate related reporting responsibilities under ISA (UK) 720
  • IASB issues IFRS Accounting Taxonomy update for disclosure of accounting policies and definition of accounting estimates
  • IAASB: New implementation guide available for quality management for audits of financial statements
  • IESBA takes action to respond to transformative effects of technology
  • IESBA addresses independence expectations in group audits
  • FRC consults on revised guidance for recognizing key audit partners for local audit
  • PwC’s Tim Ryan Tapped to Lead CAQ Governing Board

Read the newsletter

January 2022

In this issue:

  • Anthony Thompson and Erica Williams sworn in as PCAOB board member, chair
  • PCAOB to form two new advisory groups to enhance engagement with investors and other stakeholders
  • 2022-2023 IAASB Work plan approved pending PIOB approval
  • FRC releases a three-year plan and budget to prepare for the transition to ARGA
  • IAASB releases conforming and consequential amendments aligning existing IAASB standards to new, revised quality management standards
  • FRC: New research with audit committee chairs published
  • Q&A: IAASB head on audit’s role in combating fraud, ESG, new technologies, and more
  • Discussion document: Monitoring inflation in certain countries, November 2021
  • Audit Committee Practices Report: Common threads across audit committees

Read the newsletter

December 2021

In this issue:

  • SEC adopts amendments to finalize rules relating to the Holding Foreign Companies Accountable Act
  • Statement from the Acting Chief Accountant on OCA’s continued focus on high quality financial reporting in a complex environment
  • SEC approves 2022 PCAOB budget and accounting support fee
  • PCAOB makes HFCAA determinations regarding mainland China and Hong Kong
  • 2022 GAAP Financial Reporting Taxonomy, SEC Reporting Taxonomy, and DQC Rules Taxonomy now available
  • FRC announces areas of supervisory focus for 2022/23
  • IAASB: New technology-focused FAQ available
  • 2023 IASB Research Forum – call for papers
  • The demand for assurance engagements on sustainability and ESG reporting is high. Here is how the IAASB is responding.
  • CAQ Audit planning alert for auditors of brokers and dealers

Read newsletter

November 2021

In this issue:

  • SEC updates electronic filing requirements
  • SEC approves PCAOB rule to establish a framework for determinations under the Holding Foreign Companies Accountable Act
  • SEC appoints new chairperson and board members to the PCAOB
  • Christina Ho and Kara M. Stein sworn in as PCAOB board members
  • PCAOB approves 2022 budget
  • FASB proposes changes to interim disclosure requirements
  • FASB improves discount rate guidance for lessees that are not public business entities
  • FAF trustees reappoint Marsha L. Hunt to the FASB
  • FASB proposes expanded disclosures and improved accounting related to the credit losses standard
  • IAASB announces new board member appointments for 2022
  • IOSCO: IFRS Foundation’s International Sustainability Standards Board on the right track
  • IESBA welcomes launch of eCode 2.0 and eIS; IAASB publishes fully-digital handbook of pronouncements on eIS
  • IAASB and IFAC release less complex entities consultation survey
  • FRC report sets out what it expects from audit firms to deliver high quality audit
  • IESBA announces new board member appointments for 2022
  • FRC publishes latest edition of Developments in Audit
  • AICPA welcomes new International Sustainability Standards Board
  • Statement of support for the International Sustainability Standards Board
  • 2021 audit committee transparency barometer
  • PCAOB: Supervision of audits involving other auditors

Read newsletter

October 2021

In this issue:

  • Statement from the Acting Chief Accountant: The importance of high quality independent audits and effective audit committee oversight to high quality financial reporting to investors
  • Forum for Auditors of Small Businesses and Broker-Dealers
  • New FASB standard improves consistency in accounting for acquired revenue contracts with customers in a business combination
  • Gabriela Figueiredo Dias to lead the IESBA
  • FRC review of Alternative Performance Measures by UK companies finds room for improvement
  • FRC review of IAS 37 ‘Provisions, Contingent Liabilities, and Contingent Assets’
  • IESBA: Now available: 2021 handbook
  • FRC publishes oversight responsibilities and independent supervisor reports
  • FRC to focus on climate-related reporting as new disclosure requirements beckon
  • FRC publishes latest major local audit quality inspection results
  • AICPA issues new standard on auditor’s risk assessment

Read newsletter

September 2021

This edition of the PPTA discusses changes in the SEC general counsel, the PCAOB’s newly adopted rules for creating HFCAA determinations, and the FASB’s proposed improvements for equity securities. Also included are new FRC International guidelines, such as the International Sustainability Standards Setting.

Read newsletter

August 2021

The August PPTA covers SEC’s enhanced access to financial disclosure data, PCAOB board members public statement, FASB 2021 Investor Outreach Report, and FRC guidance for auditors. The CAQ also posted a summary and analysis of the most recent publicly-available ESG data for S&P 500 companies.

Read newsletter

July 2021

This month’s recap includes the SEC’s statement on investor protection related to recent developments in China, the FASB issued Accounting Standards Update, and the IASB proposed reduced disclosure requirements for subsidiaries. The CAQ also provides BEIS consultation on restoring trust in audit and corporate governance.

Read newsletter

June 2021

In this issue, the SEC announced it’s Annual Regulatory Agenda, the PCAOB announced a reassessment of stakeholder engagement, the FASB appointed two new members (Jack Ciesielski and Brandon Coleman)  to the Emerging Issues Task Force, the IAASB made new Quality Management Implementation Guides available, and the AICPA issued a Statement on Auditing Standards. The CAQ also provided an alert about SEC amendments to certain auditor independence requirements.

Read newsletter

May 2021

In this feature, SEC Commissioner Allison Herren Lee gave a speech on the myths and misconceptions about ‘materiality,’ the PCAOB proposes rules to create a framework for the Holding Foreign Companies Accountable Act determinations, the FASB proposes to improve and expand hedge accounting, the FRC issues revised UK auditing standards for the auditor’s responsibilities relating to fraud, and audit risk assessment guidance was added to the AICPA and CIMA’s digital assets practice aid.

Read newsletter

April 2021

This PPTA details multiple SEC public statements, the PCAOB nominations for its Standards Advisory Group, and the new IAASB guidance on helping advance assurance for non-financial reporting.  Also included is an AFC published resource examining the implications of artificial intelligence in relation to mitigating fraud risk.

Read newsletter

March 2021

This installation of PPTA delves into the SEC seeking public comment on amendments to the HFCAA (Holding Foreign Companies Accountable Act), the PCAOB approving the formation of a new advisory group, the FASB announcing that the SEC had accepted the 2021 GAAP Financial Reporting Taxonomy, the IFIAR urging continued audit quality improvement efforts, and the CAQ also published a guide to the PCAOB’s inspection program.

Read newsletter

February 2021

This edition of the PPTA discusses the SEC’s Allison Herren Lee’s statement on the review of climate-related disclosure, the FASB announces a new investor education video on convertible instruments, the IASB proposes to extend support for lessees accounting for COVID-19-related rent concessions, and the AICPA’s proposed new quality standards are aimed to enhance and maintain a CPA firm’s audit quality. Readers can also find a CAQ comment letter on the IAASB’s Discussion Paper.

Read newsletter

January 2021

This month details changes in the roles within the SEC, the departure of PCAOB board member J. Robert Brown, Jr, FASB clarifies the scope of recent reference rate reform guidance, the IFRS Foundation publishes educational material to support companies in applying going concern requirements, and the AICPA promotes Sue Coffey to CEO of public accounting. The CAQ also posted highlights from its SEC Regulations Committee’s virtual meeting.

Read newsletter

December 2020

In this issue, the SEC announces new Investor Advisory Committee members, the PCAOB issues COVID-19 spotlight and provides insights and reminders for auditors, the FASB proposes improvements to accounting for acquired revenue contracts with customers in a business combination, the FRC highlights importance of a challenge culture in audit firms, and the AICPA hires Jennifer Burns, CPA as Chief Auditor. The CAQ also reports on common themes that emerged in data from the first year of CAMs implementation.

Read newsletter

November 2020

This month’s report showcases the SEC’s statement on the third meeting with audit firm representatives regarding audit quality in emerging markets, the PCAOB approves 2021 budget and reaffirms strategic direction, and the FASB issues a standard that delays long-duration insurance guidance and updates early adoption provisions. In International news, the IAASB communique details plans to address complexity, understandability, scalability, and proportionality, and the IASB proposes amendment to its leases standard to improve accounting for sale and leaseback transactions.

Read newsletter

October 2020

In this synopsis, the SEC Division of Corporate Finance updates CD&Is, the PCAOB issues a staff update and preview of 2019 inspection observations, the FASB proposes three targeted improvements to the leases standard, the FRC publishes future of corporate reporting discussion paper, and the CAQ posts SEC Regulations Committee highlights from July 29, 2020.

Read newsletter

September 2020

In the September PPTA, the SEC modernizes disclosures for banking registrants, the PCAOB updates research and standard-setting agendas, the IFAC calls for a new Sustainability Standards Board alongside the IASB, and the CAQ shares a video highlighting skepticism as a focus for mitigating fraud risk.

Read newsletter

August 2020

This installation discusses August staffing changes and reappointments at the SEC, the FASB updating financial reporting requirements related to convertible instruments and contracts in entity’s own equity, and the IASB issuing IFRS Taxonomy Update for COVID-19-Related Rent Concessions. Also featured from the CAQ is Anti-Fraud in Action: Balancing big data and data ethics during COVID-19.

Read newsletter

July 2020

In this recap, the SEC announces the creation of the Event and Emerging Rick Examination Team, the PCAOB posts “Conversations with audit committee chairs: COVID-19 and the audit,” the FASB proposes concepts for defining elements in a financial statement, and the IAASB publishes COVID-19 related guidance on review engagements on interim financial information. Also, the AICPA issues updated standards on accounting estimates and disclosures for auditors navigating a complex financial reporting environment.

Read newsletter

June 2020

This month’s PPTA details the SEC extending relief for virtual meetings of fund boards, PCAOB issues six largest U.S. Firm Inspection Reports in a new format, the FASB offers limited effective date delays on revenue recognition and leases standards, and the IAASB publishes COVID-19 related guidance on auditing accounting estimates and related disclosures.

Read newsletter

May 2020

This month, the SEC provides temporary, conditional relief to allow small businesses to pursue expedited crowdfunding offerings, the PCAOB posts a spotlight on audits involving Cryptoassets, the FAF issues a 2019 Annual Report, and the IASB issues a package of narrow-scope amendments to IFRS Standards. The CAQ also shared COVID-19 Resources.

Read newsletter

April 2020

In this PPTA, the SEC enhances standards for critical market infrastructure, PCAOB staff provides reminders for audits nearing completion in light of COVID-19, the FASB seeks public comment on a proposal to offer limited effective date delays on time-sensitive standards, IOSCO releases a statement on application of accounting standards during the COVID-19 outbreak. The CAQ also provides COVID-19 Resources.

Read newsletter

March 2020

This issue provides an extensive list of COVID-19 Resources and news. Also included, the SEC adopts rule amendments and new standards, the PCAOB publishes 2019 Annual Report, the FASB issues new ASUs, the FRC publishes a report and discussion paper on technology in the audit, and the AFC publishes Assessing Corporate Culture: A Proactive Approach to Deter Misconduct.

Read newsletter

February 2020

In this addition, the SEC proposes amendments to modernize the infrastructure for the collection, consolidation, and dissemination of market data, the FASB proposes improvements to accounting for contributed nonfinancial assets by not-for-profit organizations, the FRC outlines plans for an operational separation of the UK’s largest firms, and the AFC publishes Fraud and Emerging Tech: Blockchain.

Read newsletter

January 2020

In this issue of PPTA, the SEC proposes amendments to modernize and enhance financial disclosures and issues MD&A metrics guidance, FASB clarifies the accounting for equity securities, AICPA seeks feedback on insurance entities working drafts, and accounting bodies call for improved UN Sustainable Development Goals disclosures. The CAQ also posts highlights of the September 2019 SEC Regulations Committee.

Read newsletter

December 2019

In this synopsis, the PCAOB publishes Critical Audit Matters Spotlight, the SEC approves 2020 PCAOB budget, the FASB issues a standard to improve accounting for income taxes, IASB proposes a new standard to bring greater transparency to ‘non-GAAP’ measures, and the AICPA issues new standards. The CAQ white paper highlights the role of auditors in company-prepared information.

Read newsletter

November 2019

In this issue, the PCAOB approves the 2020 budget and reaffirms the five-year strategic plan, the SEC staff issues SAB on new credit losses standard, the FASB issues new and proposed ASUs, and the AICPA proposes updates to audit and accounting guide for the gaming industry.

Read newsletter

October 2019

In this report, the SEC announces PCAOB Board member changes, the FASB votes to delay effective dates for major standards, the FRC announces a new leadership team, and the CAQ issues new ‘Profession in Focus’ video.

Read newsletter

September 2019

This installation discusses the new rule the SEC adopts to allow all issuers to ‘test-the-waters,’ the FASB proposes guidance to assist in transition away from interbank offered rates to new reference rates, the IASB amends IFRS standards in response to the IBOR reform, AICPA practice aid offers guidance on credit losses for auditors and the CAQ releases it’s 13th annual Main Street Investor Survey.

Read newsletter

August 2019

In this installment, the PCAOB publishes a report on interim inspection program related to broker-dealer audits, the SEC increases fee rates for FY 2020, FASB proposes improvements related to distinguishing liabilities from equity, the IASB proposes amendments to IFRS standards to improve accounting policy disclosures, and CAQ issues new ‘Profession in Focus’ video.

Read newsletter

July 2019

In this review, SEC staff publishes a statement highlighting risks for market participants to consider as they transition away from LIBOR, the PCAOB posts CAM resources for audit committees and investors, FAF Trustees open search for new board chair, and the U.K. government consults on CMA recommendations. The CAQ also comments on proposed SEC rules.

Read newsletter

June 2019

 

In this issue, the PCAOB updates the Data and Technology project web page, the SEC adopts an amendment to a single issuer exemption for broker-dealers, the FASB seeks public company input on segment reporting, and the EC issues new rules to support the digitalization and transparency of financial reports.

Read newsletter

May 2019

In this installation, the SEC proposes amendments to the accelerated and large accelerated filer definitions, FASB issues new, proposed ASUS, the PCAOB issues staff guidance that offers a deeper dive into the communication of CAMS, and the FCR publishes a guide to help smaller listed companies improve financial reporting. A CAQ tool helps audit committees oversee implementation of new credit losses standard.

Read newsletter

April 2019

In this PPTA, the PCAOB releases the 2018 Annual Report, the FASB rejects a proposal on the credit losses standard, the IAASB seeks input on audits of less complex entities, and we introduce new videos on our website.

Read newsletter

March 2019

In this edition, the PCAOB staff provides guidance in the advance of CAM effective dates, the SEC adopts rules to implement FAST Act mandate, the FRC consults on stronger growing concern standard for auditors, and CAQ comments SEC’s Request for Comment on Earnings Releases and Quarterly Reports.

Read newsletter

February 2019

In this release, the SEC proposes to expand ‘test-the-waters’ modernization reform to all issuers, FASB proposes targeted transition relief to institutions applying credit losses standard, the IAASB launches future strategy and work plan consultation, and Senators introduce bipartisan legislation providing regulatory relief to spur innovation.

Read newsletter

January 2019

In this release, Corp Fin issues a statement regarding recommencement of operations, FASB issues staff Q&A document on estimating credit loss reserves, the FRC launches consultation on changes to Third Country Auditors (Fees) Instrument, and the AICPA votes to issue OMnibus Statement on Auditing Standards. The CAQ Year in Review recaps 2018 activities.

Read newsletter