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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.

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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.

August 2022

SEC

SEC appoints Anthony C. Thompson to second term on PCAOB

The SEC announced the appointment of Anthony (Tony) C. Thompson to a second term as a Board Member of the PCAOB. Thompson joined the Board on January 3, 2022, filling a term that expires on October 24, 2022. His second term will run until October 24, 2027.

SEC publishes draft FY22-26 strategic plan for public comment

The SEC released for public comment a draft strategic plan for fiscal years 2022 to 2026. Comments should be received on or before September 29, 2022. The draft strategic plan establishes three primary goals:

  • Protecting working families against fraud, manipulation, and misconduct;
  • Developing and implementing a robust regulatory framework that keeps pace with evolving markets, business models, and technologies; and
  • Supporting a skilled workforce that is diverse, equitable, inclusive, and is fully equipped to advance agency objectives.

Among the initiatives to meet these goals, the SEC intends to modernize design, delivery, and content of disclosures to investors so they can access consistent, comparable, and material information while making investment decisions. The agency also aims to update existing SEC rules and approaches to reflect evolving technologies, business models, and capital markets.

SEC adopts pay versus performance disclosure rules

The SEC adopted amendments to its rules to require registrants to disclose information reflecting the relationship between executive compensation actually paid by a registrant and the registrant’s financial performance. The rules implement a requirement mandated by the Dodd-Frank Act. Specifically, the amendments require registrants to provide a table disclosing specified executive compensation and financial performance measures for their five most recently completed fiscal years. With respect to the measures of performance, a registrant will be required to report its total shareholder return (TSR), the TSR of companies in the registrant’s peer group, its net income, and a financial performance measure chosen by the registrant.

SEC Updated Questions and Answers (Q&A) for Compliance and Disclosure Interpretations (C&DI) of Rule 14a-19

The SEC added three Q&As in their proxy rules and schedule 14A C&DIs relating to dissident or contested shareholder notices in Questions 139.01, 139.02, and 139.03.

Auditor independence and ethical responsibilities: Critical points to consider when contemplating an audit firm restructuring

The SEC posted a statement by acting chief accountant Paul Munter regarding complex business relationships and audit firm restructurings. In the view of the Office of the Chief Accountant (OCA) staff, complex transactions with investors that are not traditional accounting firms, and have not previously been subject to the same independence and ethical responsibilities, elevate the risk to an auditor’s independence with respect to its audit clients. In the current environment, as some accounting firms may be considering changes to their capital and firm structures, OCA expects accounting firms to keep as their top priority a focus on their vital gatekeeper function. OCA reminds accountants that they are required to be independent in both fact and appearance.

PCAOB

PCAOB seeks public comment on five-year strategic plan for protecting investors

The PCAOB released a draft of its five-year strategic plan, inviting the public to comment on how the organization will pursue its mission of protecting investors from 2022 to 2026. Comments on the draft plan must be received by September 15, 2022. The plan lays out an ambitious roadmap built around four goals:

  • Modernizing standards;
  • Enhancing inspections;
  • Strengthening enforcement; and
  • Improving organizational effectiveness.

The PCAOB releases 2022 audit committee resource

The PCAOB released its 2022 Spotlight Audit Committee Resource. It spotlights fraud and other risks, initial public offerings and mergers and acquisitions, audit execution, independence, quality control, and technology.

The PCAOB issues annual report on inspections of broker-dealer audits

The PCAOB issued its annual report on inspections of broker-dealer audits. The PCAOB’s program identifies and addresses any significant issues observed in audits and related attestation engagements. Key observations from the report include the following:

  • The percentage of firms inspected where one or more audit and/or attestation engagement deficiencies was identified remained high at 78% in 2021, consistent with 2020.
  • The percentage of audit engagements reviewed where deficiencies were identified declined to 49% in 2021, from 61% in 2020, but remained high, primarily due to deficiencies associated with auditing revenue.
  • Generally, the results of inspections of firms that audited 100 or fewer broker-dealers resulted in higher percentages of audit engagements with identified deficiencies, compared to the results for firms that audited more than 100 broker-dealers. For firms that audited 100 or fewer broker-dealers, the percentage of audit engagements with identified deficiencies declined to 60% from 71% in 2020 and 84% in 2019. For firms that audited more than 100 broker-dealers, the percentage of audit engagements with identified deficiencies declined to 32% in 2021 from 38% in 2020 and 41% in 2019.

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 signed a Statement of Protocol with China, taking the first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong completely, consistent with U.S. law. The agreement includes three provisions that, if abided by, would grant the PCAOB complete access for the first time:

  • The PCAOB has sole discretion to select the firms, audit engagements and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities.
  • Procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information as needed.
  • The PCAOB has direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

The PCAOB provides 2021 observations from the target team, a group of inspectors who focus on emerging audit risks and topics

The PCAOB posted a link to its August 2022 report Spotlight: Observations From the Target Team’s 2021 Inspections. It spotlights fraud, interim reviews of special purpose acquisition companies, going concern, and cash and cash equivalents.

FASB

FASB issues 2022 Investor Outreach Report

The FASB issued its 2022 Investor Outreach Report. The report notes a threefold increase in investor participation in the FASB’s most recent agenda consultation process over the last one conducted in 2016, with the top seven most frequently cited investor priorities currently included on the technical agenda or undergoing further analysis on the research agenda. The report also details the FASB’s ongoing, proactive investor outreach efforts, which included more than 485 investor interactions over the year ended June 30, 2022.

SEC accepts 2022 Q3 Supplemental GAAP Taxonomy

The FASB announced that the SEC has accepted the 2022 Q3 Supplemental GAAP Taxonomy, which includes improvements to the GAAP Financial Reporting Taxonomy and the SEC Reporting Taxonomy. The 2022 Q3 Supplemental GAAP Taxonomy includes improvements for the SEC Release Nos. 33–10771; 34–88606; IC–33836. In addition, the 2022 Q3 Supplemental GAAP Taxonomy includes improvements needed to tag disclosures discussed in SEC Staff Accounting Bulletin No. 121.

FASB seeks input on proposal to improve accounting for investments in tax credit structures

The FASB issued a proposed Accounting Standards Update (ASU) intended to improve the accounting and disclosures for investments in tax credit structures. The amendments in this proposed ASU would allow reporting entities to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the program from which the income tax credits are received. The election would be on a program-by-program basis. The proposed amendments would also require disclosures to enable financial statement users to better understand the nature and effects of the entity’s investments that generate income tax credits and other income tax benefits. Stakeholders are encouraged to review and provide comments on the proposed ASU by October 6, 2022.

AICPA

More companies obtaining ESG assurance, according to global survey

The International Federation of Accountants and the AICPA co-authored a report, The State of Play in Reporting and Assurance of Sustainability Information, that shows the percentage of companies around the world that had ESG assurance provided on their reporting rose to 58% in 2020 from 51% the previous year. The United States and the United Kingdom continue to lag behind when it comes to having auditors provide ESG assurance.

Embrace fluidity and remove the risks of remote audits

The AICPA posted an article about remote audits. The AICPA says remote audits offer flexibility, but also present possible concerns over security breaches or document legitimacy. A hybrid approach to audits can possibly help mitigate those risks, but these environments also are not free of risk. Auditors should stay alert to ensure their audits remain high quality. Processes and systems will need to remain fluid, as they will surely evolve.

International

IAASB issues new frequently asked questions for reporting going concern matters in the auditor’s report

The International Auditing and Assurance Standards Board (IAASB) issued a non-authoritative publication to address some of the common questions related to reporting going concern matters in the auditor’s report. The publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern and Key Audit Matters sections, and the Emphasis of Matter paragraphs, in an auditor’s report prepared in accordance with the International Standards on Auditing.

IFRS Foundation completes consolidation with Value Reporting Foundation

The IFRS Foundation announced the completion of the consolidation of the Value Reporting Foundation (VRF) into the IFRS Foundation. It follows the commitment made at COP26 to consolidate staff and resources of leading global sustainability disclosure initiatives to support the IFRS Foundation’s new International Sustainability Standards Board’s work to develop a comprehensive global baseline of sustainability disclosures for the capital markets. The VRF’s SASB Standards serve as a key starting point for the development of the IFRS Sustainability Disclosure Standards, while the Integrated Reporting Framework provides connectivity between financial statements and sustainability-related financial disclosures.

FRC publishes recommendations to improve digital security disclosure

The Financial Reporting Council (FRC) Lab published a report on digital security risk disclosure to help companies improve the disclosure of digital security strategies, risks, and governance. The FRC’s research showed that disclosures are not meeting investor needs effectively and companies need to improve to address digital security risk. Companies can improve disclosures by focusing on aspects of strategy, governance, risk, and events. The Lab report provides details about how to optimize disclosure for investors. It also includes practical examples of developing practice.

FRC publishes snapshots of current practice in auditor reporting

The FRC published research into the state of auditor reporting in the UK. A series of six infographic ‘snapshots’ provide an in-depth look at the length and readability of auditors’ reports, as well as how auditors communicate how the audit was performed, the risks they identified, and the responses to those risks. This research represents the first step in meeting the FRC’s undertaking to improve the usability and informativeness of auditor’s reports in its recent Position Paper on Restoring Trust in Audit and Corporate Governance. The six snapshots are:

  • Snapshot 1: Understandability and usability of auditor reports
  • Snapshot 2: Communicating judgements on materiality and the scope of group audits
  • Snapshot 3: Key audit matters
  • Snapshot 4: Key audit matters on climate change, Covid-19, alternative performance measures, and graduated findings
  • Snapshot 5: Going concern
  • Snapshot 6: Fraud and other irregularities

Better ESG data drives more impactful decision-making by companies

The FRC Lab published a report on ESG data production that is designed to help companies consider how to collect and use ESG data more effectively to support better decision-making. The report sets out the three key elements of ESG data production: motivation, method, and meaning. The report outlines some suggested positive actions to address the challenges of identifying and using the most relevant information as well as how Boards can optimize how ESG data is collected and applied.

CAQ

CAQ Symposium 2022

The CAQ posted video of CAQ Symposium 2022, which was held on August 8 and brought together leading academic scholars, regulators, and top practitioners from the CAQ’s Governing Board Member firms. Hosted by Deloitte & Touche LLP, the “virtual” event featured a presentation that provided an overview of key macroeconomic trends that have impacted companies and their auditors. Following the presentation, the first panel discussed the implications of these issues for financial statement preparers and auditors. The second panel discussion covered the impact of climate-related risks on business strategy and corporate disclosures related to the SEC’s proposed rule released in March. Smaller breakout sessions allowed academics, regulators, and senior practice leaders to explore the topics raised by the panelists.

Pop-up conversation with Rep. Brad Sherman (D-Calif.) and Mark Baer of Crowe

The CAQ posted a video of a Punchbowl News pop-up conversation that the CAQ joined to discuss capital market regulation and maintaining trust in a changing economy. The pop-up conversation featured Rep. Brad Sherman (D-Calif.) and Mark Baer, CEO of Crowe. Following the conversation with Rep. Sherman, CAQ CEO Julie Bell Lindsay and Baer explored changes to the corporate reporting system as a result of the Sarbanes-Oxley Act. Lindsay acknowledged the continuous improvement of audit quality over the past 20 years. When discussing the role of cryptocurrency in auditing, Lindsay highlighted the CAQ’s first-ever Audit Partner Pulse Survey.

LinkedIn Live | Audit partner observations: The economy, corporate reporting and more

The CAQ posted the video of a LinkedIn Live discussion on the results of its inaugural Audit Partner Pulse survey. Hosted by the CAQ, the discussion explored some key themes from the survey, including ESG reporting, cybersecurity risks, and cryptocurrency. Speakers:

  • Amanda Iacone, reporter, Bloomberg
  • Scott Flynn, vice chair – Audit, KPMG
  • Julie Bell Lindsay, CEO, CAQ

Recent PPTA newsletters

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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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