Public Policy and Technical Alert | August 2026

In This Issue

Updated Statement Regarding the Division of Corporation Finance’s Role in the Exchange Act Rule 14a-8 Process

The SEC issued an updated statement regarding the Division of Corporation Finance’s role in the Exchange Act Rule 14a-8 process.

SEC Proposes New Regulation Crypto Assets

The SEC announced that it proposed new rules, titled Regulation Crypto Assets, that would create a clear and fit-for-purpose framework for certain investment contracts involving crypto assets.

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Kyle S. Hauptman Sworn In as PCAOB Board Member

The PCAOB announced that Kyle S. Hauptman was sworn in as a Board Member. His current term will expire on October 24, 2029.

PCAOB Posts New Resource to Help Auditors Implement Quality Control Standard

The PCAOB released QC 1000 Questions and Answers, a new staff resource that provides answers to questions about certain matters related to the implementation of QC 1000, A Firm’s System of Quality Control, ahead of the standard’s December 15, 2026, effective date.

PCAOB Board Members Laughton and Botic to Host Forums in Denver and San Francisco for Auditors of Small Businesses and Auditors of Broker-Dealers

The PCAOB announced details for two in-person PCAOB forums for auditors of small businesses and auditors of broker-dealers to be hosted by Board Member Steven D. Laughton on Sept. 18, 2026 at the Grant Hyatt Denver and Board Member George R. Botic on Sept. 22, 2026 at the University of San Francisco. There is no fee to attend either forum, but advance registration is required. While the event is in-person only, a recording of the event will be made available on the PCAOB’s website.

PCAOB Posts Discussion Materials From Summer 2026 Meetings of the Inspections Modernization Council (IMC)

The PCAOB posted select materials shared for discussion purposes with the IMC for its meetings in July and August 2026. The discussion materials — which address topics including the development of a QC-informed inspection approach, use of technology, inspection reporting, and remediation — are available at the IMC’s page on the PCAOB website.

FASB Issues 2026 Investor Outreach Report

The FASB issued its 2026 Investor Outreach Report. The report also provides updates on the FASB’s Investor Advisory Committee.

FASB Seeks Public Comment on Proposal to Enhance Cash Equivalents Disclosures and Clarify the Cash Equivalents Evaluation for Certain Digital Assets

The FASB published a proposed Accounting Standards Update (ASU) intended to clarify how the current definition of cash equivalents applies to certain digital assets, such as stablecoins, and to increase transparency about the significant components of cash equivalents. Stakeholders are encouraged to review and provide comments on the proposed ASU by November 19, 2026.

Financial Accounting Foundation (FAF) Appoints Hillary H. Salo as Next Chair of the FASB and Announces Call for FASB Member

The Board of Trustees of the Financial Accounting Foundation (FAF) announced the appointment of Hillary H. Salo as the next chair of the FASB. Her term as chair will begin July 1, 2027, and conclude June 30, 2034. Salo currently serves as Vice Chair of the FASB and chair of the Emerging Issues Task Force and will succeed Richard R. Jones, whose term concludes June 30, 2027.

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Revised Definition of Attest Engagement Team in the AICPA Code of Professional Conduct

The AICPA Professional Ethics Executive Committee (PEEC) adopted a revised definition of attest engagement team in the AICPA Code of Professional Conduct at its August 2026 meeting. The effective date is December 15, 2026. Early implementation is allowed.

New Auditing Standard Clarifies and Enhances CPAs’ Responsibilities Relating to Fraud in a Financial Statement

The AICPA’s Auditing Standards Board (ASB) approved a new standard that clarifies and enhances auditors’ responsibilities relating to fraud or suspected fraud in a financial statement audit. The ASB’s adoption of Statement on Auditing Standards (SAS) No. 151, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, supersedes SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, as amended (Section 240, Consideration of Fraud in a Financial Statement Audit), and amends several other standards. The final version of the standard is expected to be posted online in October. SAS No. 151 will be effective for audits of financial statements for periods ending on or after Dec. 15, 2028, although firms can implement it earlier.

AICPA Provides New Guidance on Stablecoins, Mining Revenue, and Current Auditing Standards

The AICPA released an updated version of its practice aid, Accounting for and Auditing of Digital Assets, providing accounting and auditing professionals with new guidance addressing emerging developments in the digital asset ecosystem, including accounting for stablecoin issuers, auditing mining revenue arrangements, and updates for recently effective auditing standards. The August 2026 update includes several significant enhancements:

• New guidance for stablecoin issuers
• New auditing guidance for mining revenue
• Updated for current auditing standards
• Additional enhancements

International Auditing and Assurance Standards Board (IAASB) Proposes Revisions to Core Standards to Enhance Risk-Based Audit Framework and Address Technological Advances

The IAASB released for public consultation proposed revisions to three International Standards on Auditing (ISAs): ISA 330, The Auditor’s Responses to Assessed Risks; ISA 500, Audit Evidence; and ISA 520, Analytical Procedures. The proposed revisions establish a comprehensive basis for auditors’ judgments about audit evidence, including:

• a revised definition of audit evidence to reflect today’s digital environment;
• greater emphasis on the intended purposes of audit procedures;
• strengthened requirements for evaluating the relevance and reliability of information used as audit evidence;
• clarification of key concepts; and
• reinforced application of professional skepticism throughout the audit.

Responses from stakeholders are requested by December 15, 2026. A new User Consultation Survey will be open during this period as well. The IAASB will also host a two-part global webinar series open to all interested stakeholders.

New Podcast on the IFRS for SMEs Accounting Standard

The IFRS Foundation announced that a new podcast on the IFRS for small and medium-sized entities (SMEs) Accounting Standard is available.

Preparing for IFRS 20 Implementation

The IFRS Foundation shared videos on preparing for IFRS 20 Regulatory Assets and Regulatory Liabilities in English, Brazilian Portuguese, and Spanish.

Comment Letter to the PCAOB on Standard Setting

The CAQ submitted a comment letter to the PCAOB on its proposal, Request for Public Comment on PCAOB Standard Setting. The CAQ expresses support for a publicly available conceptual framework grounded in transparency, stakeholder engagement, rigorous analysis, effective implementation and post-implementation support, and domestic and international coordination. The CAQ recommends continuing research on data and technology, including digital assets, and prioritizing projects related to NOCLAR and fraud, auditor independence, and going concern. The CAQ also provides observations regarding the potential impact of the SEC’s semiannual reporting proposal on PCAOB standards.

Fraud Risk Considerations in 2026: Key Takeaways for the Financial Reporting Ecosystem

The CAQ shared an article written by Desiré Carroll, CPA, CA(SA), Senior Director, Professional Practice on the evolving fraud risk environment that emphasizes the importance of remaining vigilant amid changing regulatory conditions, exercising sound judgment, fostering a culture that mitigates fraud risk, and thoughtfully governing the use of artificial intelligence.

PCAOB Inspection Reports: Understanding Their Value and Context

The CAQ posted an article written by Dennis McGowan, CPA, Vice President, Professional Practice and Anti-Fraud Initiatives, on the importance of understanding what PCAOB inspection reports are designed to measure as stakeholders review the latest findings in more detail. McGowan discusses the following topics:

• An Important Accountability Tool
• Reports Should Be Viewed in Context
• Looking Ahead: Enhancing the Value of Inspection Reports

Shaping the Future of Assurance: Advancing AI in the Audit

The CAQ posted an article written by Troy Merkel, Assurance Digital Leader, RSM LLP, on how evolution is accelerating in the public company audit profession as firms continue applying artificial intelligence, automation, and connected digital workflows. RSM has added three innovations to its digital audit ecosystem within the past year—Ask Luca, Microsoft M365 Copilot, and RSM Luca Resourcing. Merkel discusses the following topics:

• Ask Luca: trusted guidance where auditors work
• AI expanding capacity for higher-value work
• RSM Luca Resourcing: connecting people, projects and execution
• Building confidence in a changing market

Highlights of CAQ SEC Regulations Committee Joint Meeting with the SEC Staff

The CAQ shared highlights of the June 2026 Joint Meeting of the SEC Regulations Committee and the SEC Staff. Topics addressed at the meeting include:

• Waiver and Interpretive Requests
• Clarifications on the definition of a business under S-X Rule 11-01(d)
• Financial statements and pro forma requirements in a registration statement (offering proceeds to be used to fund the acquisition)
• Tariff disclosure observations
• Income tax disclosure observations