As part of the Center for Audit Quality’s (CAQ) ongoing effort to keep members and stakeholders informed on significant public policy and accounting matters, we are pleased to offer the Public Policy and Technical Alert (PPTA). Each month, the PPTA highlights and examines the regulatory, standard-setting, legislative, and broader financial reporting developments impacting the public company audit profession. 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.
In This Issue
SEC Held a Roundtable on Crypto Trading and Crypto Custody
The SEC’s Crypto Task Force held a roundtable on crypto trading on April 11. The roundtable, “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading” included opening remarks from the SEC. In addition to offering a panel on tailoring regulation for crypto trading, the roundtable featured a regulatory direction discussion. The primary discussion was streamed live on SEC.gov, and a recording has been posted.
The SEC’s Crypto Task Force also held a roundtable, “Know Your Custodian: Key Considerations for Crypto Custody,” on April 25. This roundtable is part of the SEC Crypto Task Force’s ongoing series discussing crypto asset regulation. The primary discussion was streamed live on SEC.gov, and a recording has been posted.
Offerings and Registrations of Securities in the Crypto Asset Markets
The SEC released a statement by the Division of Corporation Finance regarding its views about the application of certain disclosure requirements under the federal securities laws to offerings and registrations of securities in the crypto asset markets. This statement addressed its views about certain disclosure requirements set forth in Regulation S-K as they apply to Securities Act registration forms (such as Form S-1) and Exchange Act registration forms (such as Form 10). This statement also addressed its views about certain disclosure requirements of Form 20-F when used by foreign private issuers to register classes of securities under the Exchange Act, and Form 1-A for offerings exempt from registration under Regulation A.
SEC Updated Questions and Answers for Compliance and Disclosure Interpretations (C&DIs)
The SEC updated the C&DIs around the following topics:
Paul S. Atkins Was Sworn In as SEC Chairman
The SEC announced that Paul S. Atkins was sworn into office on April 21 as its 34th chairman. Chairman Atkins was nominated by President Donald J. Trump on January 20, 2025, and confirmed by the U.S. Senate on April 9, 2025. Prior to returning to the SEC, Chairman Atkins was most recently chief executive of Patomak Global Partners, a company he founded in 2009. Chairman Atkins was appointed by President George W. Bush to serve as a Commissioner of the SEC from 2002 to 2008. During his tenure, he advocated for transparency, consistency, and the use of cost-benefit analysis at the agency.
PCAOB Released 2024 Annual Report
The PCAOB released its 2024 Annual Report. The Annual Report discusses how the PCAOB advanced its investor-protection mission during fiscal year 2024 and provides the PCAOB’s financial results, including audited financial statements, the auditor’s report, and management’s report on internal control over financial reporting.
Board Member Botic Hosts Jersey City Forum for Auditors of Small Businesses and Auditors of Broker-Dealers
The PCAOB held an in-person forum on auditing in the small business environment and on auditing broker-dealers on May 1, 2025. The one-day event, part of a series of 2025 forums, took place at the Hyatt Regency Jersey City in Jersey City, New Jersey. There is no fee to attend the Jersey City forum, but advance registration is required. A recording of the event will be made available on the PCAOB’s website.
PCAOB Posted Latest Staff Videos on New Quality Control Standard in Continued Efforts to Help Firms With Implementation
The PCAOB posted a new set of staff presentation videos designed to help firms implement four components of their quality control (QC) system under QC 1000, A Firm’s System of Quality Control. They cover the following topics:
- Acceptance and continuance
- Engagement performance
- Governance and leadership
- Information and communication
PCAOB Held the April 29 Meeting of Its Investor Advisory Group
The PCAOB held a virtual meeting of its Investor Advisory Group (IAG) on April 29. The meeting agenda included IAG presentations to the Board on investor expectations of the audit, artificial intelligence opportunities and challenges, and an update on the talent pipeline, as well as an IAG request for notable critical audit matters. A recording of the meeting is available on the meeting’s event page.
PCAOB Made Available New Downloadable Datasets Featuring PCAOB Inspection Findings From Audit Firm Inspection Reports
The PCAOB announced the availability of new and enhanced downloadable datasets related to PCAOB inspection reports. Found on the PCAOB website’s Firm Inspection Reports page, the new datasets contain multiple years of information related to PCAOB inspections findings. In addition to the two new datasets, the PCAOB enhanced the existing downloadable dataset that is focused on firm-level information for the more than 4,000 inspection reports that have been published by the PCAOB.
FASB Staff Educational Paper Clarifies Guidance on the Presentation and Disclosure of Retainage for Construction Contractors
The FASB announced the release of an FASB Staff Educational Paper that addresses questions about how to apply revenue recognition guidance about presentation and disclosures to construction contracts that contain retainage (or retention) provisions. The educational paper explains the presentation and disclosure requirements in generally accepted accounting principles (GAAP) about retainage for construction contractors and provides example voluntary disclosures of retainage that would provide more detailed information about contract asset and contract liability balances.
FASB Seeks Public Comment on Proposal to Improve Accounting for Debt Exchanges
The FASB published a proposed Accounting Standards Update (ASU) that would provide accounting guidance for debt exchange transactions involving multiple creditors. The proposed ASU would specify that an exchange of debt instruments that meets certain requirements should be accounted for by the debtor as the issuance of a new debt obligation and an extinguishment of the existing debt obligation. Stakeholders are encouraged to review and provide comments on the proposed ASU by May 30, 2025.
AICPA Outlined Its Digital Assets Activities to SEC’s Crypto Task Force
The AICPA spelled out its initiatives in the digital assets space to the SEC’s Crypto Task Force, submitting a comment letter on the AICPA activities and offering to serve as an ongoing resource. The AICPA formed a Digital Assets Working Group in 2019 as a joint project of its Financial Reporting Executive Committee and Assurance Services Executive Committee. The working group – which has developed guidance under its continuously updated practice aid, Accounting for and Auditing of Digital Assets – now includes subgroups for accounting, auditing, and attestation.
PEEC Open Meeting Agenda: May 12 and 22, 2025
The AICPA announced the agenda for its upcoming Professional Ethics Executive Committee open meeting.
The International Auditing and Assurance Standards Board (IAASB) Strengthens Auditor Responsibilities for Going Concern Through Revised Standard
The IAASB released its revised International Standard on Auditing 570 (Revised 2024), Going Concern. The revised standard responds to corporate failures that raised questions regarding auditors’ responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. The standard is effective for audits of financial statements for periods beginning on or after December 15, 2026.
IAASB eNews April 2025
The IAASB posted its eNews for April 2025. This eNews provides:
- An update on IAASB projects following IAASB’s March 2025 meeting
- A look ahead at 2025
- Submission form for ISSA 5000 implementation feedback
- Key dates for this quarter
IAASB Requested Feedback on Proposed Narrow-Scope Amendments Related to Working With Experts
The IAASB opened a public consultation on narrow-scope amendments to its standards to maintain interoperability between IAASB standards and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). These proposed amendments address recent revisions to the IESBA Code related to using the work of an external expert. The IAASB invites all stakeholders to comment using the digital Response Template, which is available on the IAASB website, by July 24, 2025.
International Financial Reporting Standards (IFRS) Foundation Published 2024 Annual Report and Financial Statements
The Trustees of the IFRS Foundation published the annual report and audited financial statements for the year ended December 31, 2024. The report discusses the 2024 achievements of the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB), provides an organizational review, and details the Foundation’s financial performance.
April 2025 IASB Update and Addendum to the March 2025 International Financial Reporting Interpretations Committee (IFRIC) Update Now Available
The IFRS Foundation announced that the IASB Update, summarizing the April 2025 IASB meeting, is now available. The addendum to the March 2025 IFRIC Update has also been published.
April IASB Podcast and Q1 2025 IFRS Interpretations Committee Podcast Now Available
The IFRS Foundation announced that the April IASB podcast and Q1 2025 IFRS Interpretations Committee podcast are now available.
International Federation of Accountants (IFAC) and IESBA, alongside IAASB, Convened Multi-Stakeholder Summit on Global Standards Focused on Furthering the Public Interest
The IFAC and the IESBA, alongside the IAASB, convened a multi-stakeholder Summit in Paris on April 14, 2025. The Summit focused on the practical implementation of the new International Ethics Standards for Sustainability Assurance as well as strengthening current and future engagement with the IESBA and the IAASB in the evolving global standard-setting landscape.
International Forum of Independent Audit Regulators (IFIAR) Developments
The IFIAR announced that it held its annual Plenary Meeting in Berlin, Germany, on April 8-10, 2025, with representatives from 49 IFIAR Member jurisdictions participating in discussions focusing on key developments and emerging trends in the audit market. The IFIAR made a stakeholder announcement summarizing the Plenary Meeting.
In addition, the IFIAR released its 2024 Annual Report on April 11, 2025.
The International Organization of Securities Commissions (IOSCO) Developments
The IOSCO published a Final Report following its review of IOSCO Standards Implementation Monitoring (ISIM) for Regulator Principles 6 and 7, which address systemic risk and perimeter of regulation. This ISIM Review by IOSCO’s Assessment Committee found a high level of implementation across the 55 jurisdictions, highlights some good practices, and also identifies a few areas where there is room for improvement, observed primarily in some emerging markets.
Monitoring Group Appointed Ryan Wolfe as its Chair
In addition, IOSCO announced on April 2, 2025 that the Monitoring Group appointed Ryan Wolfe as its new Chair, effective immediately. Wolfe serves as the Acting Chief Accountant of the SEC. He brings over 20 years of experience as a professional accountant and consultant in various regulatory oversight roles. Wolfe succeeds Paul Munter, who served as the Monitoring Group Co-Chair between June 2021 and April 2023, and Monitoring Group Chair between April 2023 and January 2025.
Accounting+ Annual Report
The CAQ released the Accounting+ Annual Report. This year’s report outlines the CAQ’s continued success in building awareness and engagement, highlights strategic partnerships, and provides a roadmap for future initiatives. Now in its fourth year, Accounting+ continues to engage students in unique, dynamic ways that increase awareness of and interest in accounting as an academic and professional pursuit.
The Role of the Auditor in Climate-Related Information
The CAQ published a new resource, The Role of the Auditor in Climate-Related Information. This publication provides public company auditors with insight into:
- The types of climate-related information companies are disclosing
- The role public company auditors play in evaluating a company’s reporting of climate-related information
- The skillsets that enable auditors to perform attestation engagements over climate-related information
Statement on the Swearing-In of Paul Atkins as Chairman of the U.S. Securities and Exchange Commission
The CAQ congratulated Chair Paul Atkins on his swearing-in to lead the U.S. Securities and Exchange Commission. Chair Atkins’ deep experience with the SEC and long-standing commitment to investor protection position him well to lead the Commission at a time of rapid change in the capital markets and corporate reporting. “Strong capital markets depend on strong investor confidence — and investor confidence depends on the credibility of the information they rely on,” said Julie Bell Lindsay, CEO of the Center for Audit Quality. “We welcome Chair Atkins’ leadership and look forward to working together to advance thoughtful, forward-looking policymaking that recognizes the vital role of assurance in protecting investors and reinforcing the integrity of our markets.”
CAQ Released Updated Research Exploring Key Trends in Accounting Career Pipeline
The CAQ, in collaboration with Edge Research, released a new report exploring shifts in student perceptions of accounting and identifying messaging strategies to broaden the talent pool. The findings build on research conducted from 2021 to 2023 and offer key insights into today’s educational landscape. Some key findings from the report include:
- Significant improvements have been made in how students view accounting careers with notable increases in seeing accounting as a career that is meaningful and provides value, has strong long-term earning potential, and a good work-life balance.
- Practical, benefit focused messaging drives interest with students, especially messages that highlight accounting’s strong salary potential, career flexibility, and job security.
- Direct exposure to accounting strongly correlates with interest in accounting.
CAQ Issues Highlights of Joint Meeting of International Practices Task Force (IPTF) and SEC Staff
The CAQ has posted the final highlights of the November, 2024 Joint Meeting of the IPTF and the SEC staff. Topics addressed at the meeting include:
- Impact of adoption of IFRS 18 in new registration statements that include interim financial statements
- IFRS 18 – Reconciliation
- IFRS 18 – MPM Considerations
- Basis of accounting with respect to the FASB ASC Topic 932 disclosures for an entity that applies IFRS
- SAB Topic 4.C – Change in capital structure – Applicability to stock splits
CAQ Responds to Commissioner Hester M. Peirce’s Statement ‘There Must Be Some Way Out of Here’
The CAQ responded to Commissioner Hester M. Peirce’s Statement There Must Be Some Way Out of Here. The letter details the following views:
- Support for increased regulatory clarity related to crypto assets and the establishment of the SEC Crypto Task Force.
- Importance of coordination between the SEC and other parties, including the FASB and PCAOB, to provide additional accounting and auditing guidance for crypto assets.
- Specific considerations related to auditing crypto asset transactions and holdings and other attestation services related to crypto assets.
The Center for Audit Quality is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to audits of public companies. The CAQ promotes high quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of CPAs. For more information, visit www.thecaq.org.
The CAQ Public Policy and Technical Alert (PPTA) is intended as general information and should not be relied upon as being definitive or all-inclusive. As with all other CAQ resources, this is not authoritative and readers are urged to refer to relevant rules and standards. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The CAQ makes no representations, warranties, or guarantees about, and assumes no responsibility for, the content or application of the material contained herein and expressly disclaims all liability for any damages arising out of the use of, reference to, or reliance on such material. This publication does not represent an official position of the CAQ, its board, or its members.
Questions and comments about the Public Policy & Technical Alert can be addressed to Donnie Heinerichs, Manager, ESG Initiatives (dheinerichs@thecaq.org) or Annette Schumacher, Senior Director, Professional Practice (ashumacher@thecaq.org).