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
Chairman Atkins Launches Material Matters Podcast
The SEC announced the launch of Material Matters with SEC Chairman Paul Atkins, a new podcast that provides stakeholders and the investing public with exclusive interviews and insights around the agency’s policy and rulemaking agenda. The first episode of Material Matters includes interviews with Commissioners Mark T. Uyeda and Hester M. Peirce, in which they discuss their distinguished careers at the agency and the work ahead in 2026. Episodes of Material Matters will be available on SEC.gov, YouTube, Spotify, and Apple Podcasts.
PCAOB Chairman Logothetis to Host Forum in Jersey City for Auditors of Small Businesses and Auditors of Broker-Dealers
The PCAOB announced that an in-person PCAOB forum for auditors of small businesses and auditors of broker-dealers will be hosted by Chairman Demetrios (Jim) Logothetis on May 13, 2026. The one-day-event — part of a series of 2026 forums — will take place at the Hyatt Regency Jersey City, 2 Exchange Pl, in Jersey City, NJ. The forum will also be livestreamed for those who register in advance of the event. There is no fee to attend the Jersey City forum, but advance registration is required.
PCAOB Releases Its 2025 Annual Report
The PCAOB released its 2025 Annual Report. The Annual Report discusses how the PCAOB advanced its investor-protection mission during fiscal year 2025 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.
PCAOB Investor Advisory Group Met on April 29
The PCAOB held a meeting of its Investor Advisory Group on Wednesday, April 29, 2026. Topics discussed at the meeting included the PCAOB’s strategic priorities, PCAOB inspections, and a presentation to the Board on artificial intelligence, among others. A recording of the livestream will be posted on the event page.
PCAOB Shares Perspectives From 2025 Conversations With Audit Committee Chairs
The PCAOB released a new staff Spotlight publication, 2025 Conversations With Audit Committee Chairs. In 2025, the PCAOB staff gathered insights from more than 250 audit committee chairs. This publication presents high-level observations and takeaways from this engagement.
PCAOB Standards and Emerging Issues Advisory Group Met on May 6
The PCAOB held a meeting of its Standards and Emerging Issues Advisory Group (SEIAG) on Wednesday, May 6, 2026. Topics discussed at the meeting included a standard-setting update, the PCAOB inspection report, and the PCAOB’s strategic priorities. A recording of the livestream will be posted on the event page.
FASB Chair Adds Research Project on Current Trends and Emerging Issues: Data Infrastructure Investments and Non-Traditional Lending to Be Covered
Rich Jones, chair of the FASB, added a new research agenda project to monitor current trends and emerging issues and solicit stakeholder feedback to evaluate the continuing relevance of FASB standards and identify potential improvements. As part of the research project, the FASB staff will analyze current trends related to data infrastructure investments and non-traditional lending, including what is commonly referred to as private credit.
FASB Issues Guidance on Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock
The FASB issued an Accounting Standards Update (ASU) that provides authoritative guidance on how an issuer should initially measure paid-in-kind (PIK) dividends on equity-classified preferred stock. The ASU requires that PIK dividends on equity-classified preferred stock be initially measured on the basis of the PIK dividend rate stated in the preferred stock agreement. The ASU, including information on transition and effective dates, is available at www.fasb.org.
Financial Accounting Standards Advisory Council (FASAC) Meeting Recap: March 10, 2026
The FASB shared a recap of the FASAC meeting of the that took place on March 10, 2026. Council members discussed the following topics:
- Agenda Consultation
- FASB Agenda Decision Criteria
- Current Macro Trends and Economic Outlook
- Effects of the Use of Technology on Standard Setting
AICPA and CIMA Launch AI Accelerator Skills Program to Prepare Finance Leaders for an AI Enabled Future
The AICPA and the Chartered Institute of Management Accountants (CIMA) announced the launch of the AI Accelerator Skills Program, a groundbreaking globally offered training designed to prepare accounting and finance professionals to lead confidently in an artificial intelligence (AI) enabled world. The AI Accelerator offers a flexible, scalable, and NASBA-accredited approach to AI upskilling, with options to participate through a comprehensive bundle or a curated selection of individual courses.
Roundtable: Share Your Views on the ISA for Less Complex Entities
The Financial Reporting Council (FRC) invited stakeholders to take part in two roundtable discussions to share their views on the International Standard for Auditing for Less Complex Entities (ISA for LCE). The FRC has launched a call for views on the ISA for LCE to inform its ongoing engagement with the International Auditing and Assurance Standards Board (IAASB) during the IAASB’s project to maintain the standard, which is scheduled to run until June 2027.
FRC Publishes Final Revisions to U.K. Auditing Standards on Fraud and Going Concern
The FRC published the final revisions to two key U.K. auditing standards addressing auditors’ responsibilities in relation to fraud and going concern. The revised standards are:
- ISA (UK) 240 (Revised March 2026) – The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
- ISA (UK) 570 (Revised March 2026) – Going Concern
The revised standards will be effective for audits of financial statements for periods beginning on or after December 15, 2026.
IAASB eNews April 2026
The IAASB posted the IAASB eNews for April 2026. This edition covers:
- Highlights from IAASB’s March meeting
- Launch of the Joint IAASB IESBA User Advisory Group
- Modernizing ISRE 2410
- IAASB’s plans for Q2 2026
- Key dates for this quarter
IFRS for SMEs Accounting Standard: New Webcast and Module Available
The International Financial Reporting Standards (IFRS) Foundation announced that a new webcast and module on the IFRS for SMEs Accounting Standard are available.
International Accounting Standards Board (IASB) Podcast on the March 2026 Meeting Highlights
The IASB announced that its podcast covering highlights from the IASB meeting held in March is now available.
April 2026 IASB Agenda and Meeting Papers Now Available
The IFRS Foundation announced that the agenda, papers, and meeting summary of the April 2026 IASB meeting are now available. The IASB Update and podcast are also available here.
International Ethics Standards Board for Accountants (IESBA) Launches Surveys for Post-implementation Reviews of NOCLAR Standard and the Restructured Code
The IESBA launched two stakeholder surveys as part of its Post-Implementation Reviews (PIRs) of the provisions of the Code addressing Responding to Non-Compliance with Laws and Regulations (NOCLAR), and the Restructured Code. The IESBA also posted a Snapshot that focuses on IESBA’s PIRs.
The deadline to respond to the Survey on the Restructured Code is July 3, 2026. The deadline to respond to the Survey on NOCLAR is July 30, 2026.
International Forum of Independent Audit Regulators (IFIAR) Releases 2025 Report on Annual Survey of Audit Inspection Findings
The IFIAR released its 14th annual survey of inspection findings arising from its member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks.
IFIAR Releases 2026 Report on the Use of Technology in Audits
The IFIAR released its 2026 report on Use of Technology in Audits – Innovation and Audit Quality, which can be found online.
IFIAR Marks 20 Years at its 2026 Plenary Meeting
IFIAR marked 20 years since its formation at the 2026 IFIAR Plenary Meeting, which was hosted by France (H2A) on April 21-23, 2026. Representatives from 50 IFIAR Member jurisdictions met in Paris to participate in discussions focusing on key developments and emerging trends in the audit market, whilst also looking ahead to the next five years in approving IFIAR’s 2026-2031 Strategic Plan.
The Role of the Internal Auditor: Assessing and Responding to Fraud Risk
The CAQ shared a publication by the Anti-Fraud Collaboration that examines the internal auditor’s responsibilities in addressing fraud risk, as defined by the Global Internal Audit Standards, and highlights practical considerations for executing that role effectively.
Comment Letter: Office of the Comptroller of the Currency (OCC) Proposed Rulemaking to Implement the GENIUS Act
The CAQ submitted a comment letter to the OCC on their proposed rulemaking on Implementing the Guiding and Establishing National Innovation for U.S. Stablecoins Act for the Issuance of Stablecoins by Entities Subject to the Jurisdiction of the Office of the Comptroller of the Currency. In the letter, the CAQ’s comments focused on the aspects of the proposed rulemaking that impact public company auditors.
Statement on CAQ Leadership Transition
The CAQ’s Julie Bell Lindsay announced her decision to step down following seven years as CAQ’s CEO. “I’m incredibly proud of everything we’ve accomplished to advance the quality, integrity, and trust in public company audits and in the audit profession. It’s been an honor for me to work with the amazing team at the CAQ over the last seven years, and I am confident in their ability to build on the momentum we have created and continue to represent the public company audit profession and its important role in our capital markets. But, after much contemplation, I believe the timing is right to begin a new chapter in my career and life.” The CAQ Governing Board has appointed fellow board member Mark Koziel, CEO of AICPA, as temporary, interim CEO, effective immediately. Through his role on the Governing Board, Mark has deep familiarity with the CAQ and is a passionate advocate for its role in the public company audit profession.
The CAQ champions the public interest in the capital markets by:
- Elevating the quality, credibility, and transparency of public company audits;
- Advancing critical issues affecting public company audits;
- Driving innovation in assurance; and
- Providing a collaborative forum for capital market stakeholders to address evolving needs and challenges.
As the voice of the public company audit profession, we work to instill trust in corporate reporting and the integrity of the auditing process, ultimately empowering investors, companies, and society as a whole. 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, Professional Practice (dheinerichs@thecaq.org) or Annette Schumacher, Senior Director, Professional Practice (ashumacher@thecaq.org).