PUBLIC POLICY AND TECHNICAL ALERT, AUGUST 2019

As part of the Center for Audit Quality’s 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:

PCAOB

• PCAOB publishes report on interim inspection program related to broker-dealer audits
• PCAOB staff provides guidance for new requirements on auditing estimates and the
  auditor’s use of the work of specialists

SEC

• SEC proposes to modernize disclosures of description of business, legal proceedings,
  and risk factors under Regulation S-K
• SEC issues corrections to FAST Act Modernization and Simplification of Regulation S-K
• SEC Division of Corporation Finance updates C&DIs
• SEC clarifies investment advisers’ proxy voting responsibilities and application of proxy
  rules to voting advice
• SEC increases fee rates for FY 2020

FASB

• FASB proposes improvements related to distinguishing liabilities from equity
• FASB proposes to delay effective dates of Credit Losses, Derivatives and Hedging, and Leases for private and certain public companies and organizations
• FASB proposes effective date delay for all insurance companies applying standard on long-duration contracts

International

• IASB proposes amendments to IFRS standards to improve accounting policy disclosures
• IASB adds phase two of its project on interest rate benchmark reform to the work plan
• IFRS Foundation publishes draft Q&A on the IFRS for SMEs standard

AICPA

• AICPA issues credit loss standard working drafts
• AICPA issues ITC and discussion paper on determining materiality for non-quantitative
  subject matters
• AICPA proposes standard on auditing accounting estimates
• AICPA proposes standard on auditor reporting
• Coalition launched to protect professional licensing

Other Developments

• FDIC and OCC approve Volcker Rule reforms

CAQ Updates

• CAQ posts highlights of June 25 SEC Regulations Committee meeting
• CAQ issues new ‘Profession in Focus’ video

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