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
Testimony Before the U.S House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs
The SEC posted Chairman Paul S. Atkins’ testimony before the U.S. House Financial Services Committee, the same testimony he shared before the U.S. Senate Committee on Banking, Housing, and Urban Affairs to discuss the work of the SEC.
Updates to Questions and Answers for Compliance and Disclosure Interpretations (C&DIs)
The SEC updated the C&DIs around the following topics:
- Securities Act Rules – Questions and Answers of General Applicability
- Securities Act Rules – Regulation Crowdfunding
- Securities Act Forms – Questions and Answers of General Applicability
- Going Private Transactions, Exchange Act Rule 13e-3 and Schedule 13E-3
- Tender Offer Rules and Schedules
New PCAOB Publication Provides Auditors With Insights Related to Testing Transactions Between Broker-Dealers and Related Parties
The PCAOB released a staff publication, “Broker-Dealer Audit Focus: Related Party Transactions.” This edition of Broker-Dealer Audit Focus highlights key reminders for auditors of broker-dealers from PCAOB standards related to audit procedures involving a broker-dealer’s revenue and expense transactions with related parties. It also provides the staff’s perspective on common deficiencies observed in broker-dealer inspections and shares good practices that the staff has observed.
PCAOB Chairman Logothetis and Board Members Calabria and Laughton Sworn In on February 10
The PCAOB announced that Demetrios (Jim) Logothetis was sworn in on February 10, 2026, as Chairman. Dr. Mark A. Calabria and Steven D. Laughton were also sworn in as Board Members. Chairman Logothetis’ current term expires on October 24, 2030, Board Member Calabria’s current term will expire on October 24, 2027, and Board Member Laughton’s current term will expire on October 24, 2026. George R. Botic will continue his service as a Board Member and his current term will expire on October 24, 2028. Kyle Hauptman has not yet been sworn in.
AICPA Seeks Comment on Proposed Changes to Attestation Standards
The Auditing Standards Board, a standard-setting body of the AICPA, voted to seek public comment on proposed updates to attestation standards, in part to address sustainability information and other emerging areas of assurance. An exposure draft of the proposed changes is available here, with a comment period ending on June 30, 2026. The exposure draft consists of two main parts:
- Updates to the baseline attestation standards to address evolving practice; and
- Two new AT-C sections related to engagements to report on sustainability information.
Global Survey Reveals Growing AI Adoption Gap As Organizations Struggle With Talent, Technology, and Governance Readiness
The AICPA and the Chartered Institute of Management Accountants, in partnership with North Carolina State University’s Enterprise Risk Management Initiative, released a global study examining how executives perceive the opportunities and risks of artificial intelligence across regions, industries, and organizational sizes.
International Auditing and Assurance Standards Board (IAASB) Publishes Global Roundtable Feedback on Technology and Quality Management
The IAASB published a summary of feedback from its global Technology Quality Management roundtables, which explored how emerging technologies — including artificial intelligence — are affecting audit and assurance engagements and the application of the IAASB’s quality management standards. Participants broadly agreed that the IAASB’s quality management standards, particularly International Standard on Quality Management (ISQM) 1 and International Standard on Auditing (ISA) 220 (Revised), provide a strong foundation for managing technology-related risks. The IAASB will use the roundtable feedback, along with other stakeholder feedback, to inform its future work on Technology Quality Management.
IAASB Launches Survey for Post-Implementation Review of International Standard on Auditing (ISA) 540 (Revised) on Accounting Estimates
The IAASB launched a public consultation survey as part of its post-implementation review of ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures. The survey focuses on three principal areas:
- Overall views on ISA 540 (Revised);
- Perceived benefits resulting from implementation of the revised standard; and
- Potential issues, challenges, or impacts experienced or observed relating to ISA 540 (Revised).
The survey is open until June 15, 2026.
International Accounting Standards Board (IASB) Podcast on the January 2026 Meeting Highlights
The IFRS Foundation announced that the IASB podcast on the January 2026 IASB meeting is now available. Highlights covered in this episode include:
- Intangible Assets;
- Post-implementation Review of IFRS 16 Leases; and
- 2026 milestones.
February 2026 IASB Agenda, Meeting Papers, and Summary Now Available
The IFRS Foundation announced that the agenda, papers, and meeting summary of the February 2026 IASB meeting are now available.
IASB Consults on Clarifying the Fair Value Option in IAS 28
The IASB has published a consultation proposing targeted amendments to clarify which investments a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures. The IASB’s proposed narrow-scope amendments aim to improve consistency in application and provide timely clarity ahead of the effective date of IFRS 18 Presentation and Disclosure in Financial Statements. The IASB has set a shorter comment period to allow for any amendments to be completed in time for the implementation of IFRS 18. The consultation is open until April 20, 2026 and the IASB plans to finalize any amendments by mid-2026, allowing jurisdictions to bring the amendments into national legislation.
Video Resources: Risk Mitigation Accounting
The IFRS Foundation announced that new video resources are available on Risk Mitigation Accounting. The videos and technical webcast explain the aims of the proposed Risk Mitigation Accounting model, highlight the potential benefits for companies and investors, and address frequently asked questions on the proposals. The consultation is open for comment until July 31, 2026, and includes fieldwork.
IFRS Accounting Taxonomy 2025 to Remain Current for 2026 Reporting
The IFRS Foundation published guidance that the IFRS Accounting Taxonomy 2025 remains the current version for the 2026 reporting period. This reflects the fact that there have been no changes to the content or technology of the IFRS Accounting Taxonomy for the 2026 reporting periods. Consequently, stakeholders are advised to continue using the IFRS Accounting Taxonomy 2025 for tagging financial information, in line with local jurisdictional filing requirements.
International Ethics Standards Board for Accountants (IESBA) Launches Global Surveys to Inform its Role of CFOs Initiative
The IESBA launched two extended global stakeholder surveys to inform its Role of CFOs initiative, focusing on the evolving role of CFOs and equivalent senior finance leaders, the ethical challenges resulting from this evolution, and whether the IESBA Code remains clear, fit-for-purpose, and practical in the public interest. IESBA is inviting CFOs and other stakeholders who work with or oversee CFO functions to respond to the surveys up until April 24, 2026. The IESBA also released a Snapshot, or a short, non-technical overview, on its Role of CFO initiative.
International Organization of Securities Commissions (IOSCO) Publishes 2026 Workplan
The IOSCO published it’s 2026 Work Program. Building on its 2025 Work Program, IOSCO will keep its focus on strengthening capital markets. IOSCO’s key strategic priorities for 2026 are:
- Strengthening financial resilience and market effectiveness;
- Protecting investors;
- The evolution of public and private markets;
- Technological transformation; and
- Promoting regulatory cooperation and effectiveness.
2026 Audit Profession Outlook: A Post-Disruption Era: Trust, Transparency, and the Audit Profession
The CAQ posted an article written by Julie Bell Lindsay, Chief Executive Officer of the CAQ, about the current state of the public company audit profession and advancing the profession in 2026. Lindsay discusses:
- The Audit Effect: An Enduring Foundation in Uncertain Times;
- The Regulatory Landscape: Collaborating for Stronger Outcomes;
- Emerging Technologies: From Invention to Integration;
- The Talent Pipeline; and
- What This Means in Practice.
Accounting+ Annual Report
The CAQ announced that the Accounting+ 2025 Annual Report highlights continued growth in awareness and interest, showcases expanded strategic partnerships, and outlines how Accounting+ is evolving to meet the changing economic and workforce landscape. Download the 2025 Annual Report to explore the impact, insights, and path forward.
AI in Financial Reporting and Audit: What Audit Committees Need to Know
The CAQ will hold a virtual event, AI in Financial Reporting and Audit – What Audit Committees Need to Know, on March 26, 2026. This webinar is for audit committee members and those who work with and support audit committees in their financial reporting oversight role, and continues the CAQ’s journey in exploring the evolution of AI in financial reporting and the audit. Participants include Vanessa Teitelbaum, CPA, Senior Director, Professional Practice, at the CAQ; Tom Petro, Board director and author, “AI in the Boardroom;” and Mike Leonardson, Partner, at EY. Audit committee members will have the opportunity to ask the panel of experts questions in real time.
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).