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
On the Road: SEC Crypto Task Force to Host a Series of Roundtables Across the U.S.
The SEC announced that its Crypto Task Force will host a series of roundtables across the country to provide opportunities for additional stakeholders to meet with Commissioner Hester Peirce, who leads the Crypto Task Force. Commissioner Peirce and members of the Crypto Task Force will visit cities across the United States, and they are particularly interested in hearing from representatives of crypto-related projects that have 10 or fewer employees and are less than two years old.
SEC Creates Task Force to Tap Artificial Intelligence for Enhanced Innovation and Efficiency Across the Agency
The SEC announced the launch of a task force on artificial intelligence (AI) that will spearhead the agency’s efforts to enhance innovation and efficiency in its operations through the responsible use of AI. The SEC’s AI Task Force will centralize the agency’s efforts and enable internal cross-agency and cross-disciplinary collaboration to navigate the AI lifecycle, remove barriers to progress, focus on AI applications that maximize benefits, and maintain governance. The task force will support innovation from the SEC’s divisions and offices and facilitate responsible AI integration across the agency.
SEC Division of Corporation Finance Issues Staff Statement on Certain Liquid Staking Activities
The SEC’s Division of Corporation Finance issued a statement regarding certain liquid staking activities. This statement aims to provide greater clarity on the application of federal securities laws to crypto assets, specifically addressing a type of protocol staking known as “liquid staking.”
The SEC Launches ‘Project Crypto’
SEC Chairman Paul Atkins recently delivered remarks titled, “American Leadership in the Digital Finance Revolution,” which outlines the SEC’s new initiative, Project Crypto.
Staff Issues FAQs to Help Broker-Dealers Implement Financial Responsibility Requirements Related to U.S. Treasury Clearing
The SEC’s Division of Trading and Markets issued answers to Frequently Asked Questions (FAQs) that broker-dealers have posed to the staff regarding rule amendments to the customer protection rule related to the clearing of U.S. Treasury securities.
SEC Launches New Statistics and Data Visualizations Webpage
The SEC announced a new statistics and data visualization page that includes statistics and graphics on key elements of the capital markets, such as initial public offerings, exempt offerings, corporate bond offerings, reporting issuers, municipal advisors, transfer agents, and household participation in the capital markets.
SEC Updated Questions and Answers for Compliance and Disclosure Interpretations (C&DIs)
The SEC updated the C&DIs around the following topic:
SEC Staff Update the Financial Reporting Manual
The SEC staff announced the issuance of updates to certain areas of the Financial Reporting Manual. The updates reflect:
- additional real estate related and other miscellaneous revisions to conform to the May 20, 2020 amendments to the S-X Acquisition Rules,
- revisions for amendments to MD&A, selected financial data and supplementary financial information,
- revisions for changes to standards issued by the PCAOB and other clarifications related to independent accountants’ involvement, and
- other miscellaneous updates.
A summary of the most recent changes can be found here.
Board Member Thompson to Host Forum in Irving, Texas, for Auditors of Small Businesses and Auditors of Broker-Dealers
The PCAOB announced that PCAOB Board Member Anthony C. Thompson will host an in-person forum on auditing in the small business environment and on auditing broker-dealers on September 16, 2025. The one-day event – part of a series of 2025 forums – will take place at the Westin Irving Convention Center at Las Colinas in Irving, TX. There is no fee to attend the Irving forum, but advance registration is required.
PCAOB Seeks Nominations for Advisory Groups
The PCAOB seeks nominations for members of its Investor Advisory Group (IAG) and Standards and Emerging Issues Advisory Group (SEIAG) to fill upcoming vacancies due to certain members’ terms expiring on December 31, 2025. Appointed members would serve from January 1, 2026, to December 31, 2027. The deadline for submissions is September 29, 2025.
PCAOB Launches Smaller Firm Resource Group
The PCAOB announced the formation of the Smaller Firm Resource Group, an advisory group of professionals from smaller audit firms. The Smaller Firm Resource Group will advise PCAOB staff on:
- Auditing and related professional practice standards
- Inspections and related activities
- Economic considerations, including but not limited to costs and benefits of PCAOB programs, and their impact on audit quality among smaller firms.
PCAOB Postpones Effective Date of QC 1000 and Related Standards, Rules, and Forms
The PCAOB announced that it is postponing for one year, to December 15, 2026, the effective date for QC 1000, A Firm’s System of Quality Control, and other new and amended PCAOB standards, rules, and forms adopted by the Board on May 13, 2024. The Board’s action also postpones the related rescission date of certain rules and standards that are currently in force.
FASB to Host Public Roundtable on Its Post-Implementation Review of the Leases Standard
The FASB announced it will host a public roundtable on the FASB’s Post-Implementation Review (PIR) of Topic 842, Leases, on Friday, September 12, 2025, at its offices in Norwalk, Connecticut. The purpose of the roundtable is to solicit feedback from those who have experience with implementing the Leases standard to assist the FASB in its post-implementation review of the standard. The roundtable meeting will be streamed on the FASB website.
Future Audit Supervision Strategy: Financial Reporting Council (FRC) Launches Second Phase of Engagement
The FRC published a discussion paper and launched the next phase of engagement on its Future of Audit Supervision Strategy (FASS). The FRC has developed a set of proposals on which it is seeking views from stakeholders. This phase of engagement invites responses to the questions set out in this document by September 30, 2025, and the FRC will be holding a series of roundtables online and in person throughout September.
Roundtable Invitation: Proposed Amendments to PIE Auditor Registration Regulations
The FRC invited Public Interest Entity (PIE) auditors to attend a series of roundtables as part of its ongoing consultation on draft amendments to the PIE Auditor Registration Regulations. The FRC is seeking views from PIE auditors as part of its consultation, launched on July 17, 2025, which follows two years of the PIE Auditor Registration regime’s operation.
Roundtable Invitation: Small and Medium Sized Enterprises (SME) Audit Market Study
The FRC invited stakeholders to attend a series of roundtables to inform its small and medium sized enterprises (SME) audit market study. The first roundtable is taking place on Tuesday, September 9, 2025, with more roundtables taking place in September and October.
International Auditing and Assurance Standards Board (IAASB) Publishes New Resources to Support International Standard on Sustainability Assurance (ISSA) 5000 Adoption and Implementation
The IAASB released two new resources to further support jurisdictions and stakeholders in adopting and implementing the ISSA 5000, General Requirements for Sustainability Assurance Engagements:
- Extracts from ISSA 5000 for Limited and Reasonable Assurance Engagements; and
- Frequently Asked Questions (FAQ) Document on ISAE 3000 (Revised) and ISAE 3410.
In addition, the IAASB has updated the adoption information on its website, reflecting the growing global momentum toward adoption of ISSA 5000.
New ISSA 5000 Webinar Series for Sustainability Assurance Engagements
The IAASB announced it is hosting a three-part global webinar series designed to assist sustainability assurance practitioners, firms, jurisdictional standard setters, and professional organizations as they adopt, implement, or apply ISSA 5000. This series, ISSA 5000 in Focus, will take participants through ISSA 5000 from engagement acceptance, assessing risks and designing and performing procedures, and finally to concluding and reporting.
International Accounting Standards Board (IASB) Issues Amendments to IFRS 19 to Complete Catch-up Work
The IASB issued amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures, completing its planned catch-up work on the Standard. The newly issued amendments to IFRS 19 help eligible subsidiaries by reducing disclosure requirements for Standards and amendments issued between February 2021 and May 2024.
With these amendments, IFRS 19 reflects the changes to IFRS Accounting Standards that take effect up to January 1, 2027, when IFRS 19 will be applicable.
Capital Markets Pulse | August 2025
The CAQ released another edition of the Capital Markets Pulse, a monthly newsletter that provides insights, resources, and tools on the latest issues impacting the capital markets. This edition discusses significant developments in regulation, leadership transitions, and innovation in emerging areas like artificial intelligence and digital technologies.
International Practices Task Force: Highlights of May Joint Meeting with SEC Staff
The CAQ posted the highlights of the May 22, 2025, Joint Meeting of the International Practices Task Force (IPTF) and the SEC Staff. Topics addressed at the meeting include:
- IFRS 18 – Non-GAAP Considerations for Management-defined performance measures (MPMs)
- Public Communications under IFRS 18
- Columnar Presentation within the Statement of Financial Performance Presented Under IFRS 18
- Requirement to File Form 12b-25 in a Voluntary Transition Year from FPI to U.S. Domestic Registrant
- Reorganization During the IPO Process
- Application of Reg S-K 5-12(a)(4) to Foreign Targets in a De-SPAC Transaction
SEC Regulations Committee: Highlights of June Joint Meeting with SEC Staff
The CAQ posted the highlights of the June 26, 2025, Joint Meeting of the SEC Regulations Committee and the SEC Staff. Topics addressed at the meeting include:
- Transition Reporting
- Pro forma financial information in subsequent filings requiring pro-forma information, including transactions related to a de-SPAC or “Fallen Angel”
- Interim disclosures about an equity method investee under Article 10
- Staff Observations Regarding Segment Disclosures
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, Professional Practice (dheinerichs@thecaq.org) or Annette Schumacher, Senior Director, Professional Practice (ashumacher@thecaq.org).