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
Statement on Departure of Commissioner Caroline Crenshaw
SEC Chairman Paul S. Atkins, Commissioner Hester M. Peirce, and Commissioner Mark T. Uyeda released a statement on the departure of Commissioner Caroline Crenshaw.
Statement on Reforming Regulation S-K
The SEC released a statement by Paul S. Atkins, Chairman, regarding his decision to instruct the Division of Corporation Finance to engage in a comprehensive review of Regulation S-K. Chair Atkins welcomes and encourages members of the public to provide views on how the Commission can amend Regulation S-K, with the goal of revising the requirements to focus on eliciting disclosure of material information and avoid compelling the disclosure of immaterial information. Comments should be submitted as soon as possible and by no later than April 13, 2026.
Compliance Outreach on Regulation S-P
The SEC held its third and final outreach event on January 22, 2026, to help firms comply with amendments to Regulation S-P. The event included three panels: historical discussion of Regulation S-P and the rule’s new provisions; exams’ approach moving forward, including a discussion of potential Risk Alerts and other SEC publications; and an examination workshop.
SEC Approves 2026 PCAOB Budget and Accounting Support Fee
The SEC approved the 2026 budget for the PCAOB and the related accounting support fee. The 2026 PCAOB budget totals $362.1 million. The 2026 budget reflects a 9.4% ($37.6 million) decrease from the prior year. The accounting support fee totals $306.0 million, an 18.4% ($68.9 million) decrease from the prior year, of which $280.3 million will be assessed on public company issuers and $25.7 million will be assessed on brokers and dealers.
SEC Seeks Candidates for Membership on the Investor Advisory Committee
The SEC announced that it is seeking candidates for appointment as members of the SEC’s Investor Advisory Committee. Candidates will be considered for open at-large membership positions on the committee, as well as for a position as the member who is representative of the interests of senior citizens. The deadline for submission of a letter of interest is Feb. 23, 2026.
Updates to Questions and Answers for Compliance and Disclosure Interpretations (C&DIs)
The SEC updated the C&DIs around the following topic:
- Securities Act Sections
- Securities Act Rules
- Proxy Rules and Schedules 14A/14C
- Tender Offer Rules and Schedules
- Regulation S-K
Statement on Tokenized Securities
As part of an effort to offer greater clarity on the application of the federal securities laws to crypto assets, the SEC’s Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets released a statement providing their views on the taxonomies associated with tokenized securities.
SEC Appoints New Chairman and Board Members to PCAOB
The SEC announced the appointment of Demetrios (Jim) Logothetis, as Chairman, and Mark Calabria, Kyle Hauptman, and Steven Laughton, as Board members, of the PCAOB. George Botic will continue his service as a Board member and will remain as Acting Chairman until Logothetis is sworn in.
PCAOB Announces Advisory Group Members
The PCAOB announced the appointment of members of its two advisory groups. The appointees join continuing members of the Investor Advisory Group and the Standards and Emerging Issues Advisory Group. Advisory group members are generally appointed for two-year terms.
Financial Accounting Foundation (FAF) Board of Trustees Issue Call for Nominations for FASB Chair, Governmental Accounting Standards Board (GASB) Chair, FASB Member, and the Foundation Board of Trustees
The FAF Board of Trustees issued a call for nominations for the following positions: FASB Chair, Governmental Accounting Standards Board (GASB) Chair, a FASB Board member, and both Governmental and at-large FAF Trustees.
Investor Advisory Committee Meeting Recap: November 20, 2025
The FASB posted a recap of its Investor Advisory Committee meeting held on November 20, 2025. Topics discussed at the meeting include:
- Emerging Issues and Trends
- FASB Project Updates
- Equity Method of Accounting—Targeted Improvements
- Consolidation for Business Entities
AICPA Updates Criteria for Stablecoin Reporting to Address Controls Over Stablecoin Operations
The AICPA announced the update of the 2025 Criteria for Stablecoin Reporting: Specific to Asset-Backed Fiat-Pegged Tokens to include the addition of Part II: 2025 Criteria for Controls Supporting Token Operations. The newly added section captures the ongoing risks inherent in stablecoin operations. The updated 2025 Criteria
- Increases trust in stablecoins;
- Addresses risks commonly associated with stablecoin issuers’ operations; and
- Includes implementation guidance to assist both issuers and practitioners.
Professional Ethics Executive Committee (PEEC) Open Meeting Agenda: February 18, 2026
The AICPA announced the agenda for its PEEC open meeting scheduled for February 18, 2026.
Financial Reporting Council (FRC) Sets Schedule for 2026 Consultation Windows
The FRC set its consultation windows for 2026, providing stakeholders with a consistent timeline for providing feedback on regulatory developments.
International Auditing and Assurance Standards Board (IAASB) Issues Narrow-Scope Amendments Related to International Ethics Standards Board for Accountants’ (IESBA) Using the Work of Experts
The IAASB published narrow-scope amendments to its standards arising from the IESBA’s Using the Work of an External Expert project. These amendments respond to the IESBA’s recently approved revisions to its International Code of Ethics for Professional Accountants (including International Independence Standards), which introduced, among other provisions, explicit ethical requirements for using the work of external experts in audit, assurance, and non-assurance engagements. The targeted amendments affect the following IAASB standards:
- ISA 620, Using the Work of an Auditor’s Expert
- ISRE 2400 (Revised), Engagements to Review Historical Financial Statements
- ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information
- ISRS 4400 (Revised), Agreed-upon Procedures Engagements
IAASB Sets Out Its Approach to Maintaining the ISA for LCE
The IAASB developed an approach for maintaining its auditing standard for smaller and less complex entities, known as the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (the ISA for LCE). The approach is detailed in an Approach Statement that promotes transparency and execution consistency.
IAASB eNews January 2026
The IAASB posted the IAASB eNews for January 2026. This eNews covers:
- Highlights from IAASB’s December meeting
- IAASB’s focus on technology
- IAASB’s plans for Q1 2026
- Key dates for this quarter
January 2026 International Accounting Standards Board (IASB) Agenda, Meeting Papers, and Summary Now Available
The IFRS Foundation announced that the agenda, papers, and meeting summary of the January 2026 IASB meeting are now available.
Now Available: International Financial Reporting Standards (IFRS) Accounting Standards Required 2026 in Two Editions
The IFRS Foundation announced that the IFRS Accounting Standards — Required and IFRS Accounting Standards — Annotated Required 2026 are now available for purchase. Both editions contain the official authoritative pronouncements of the IASB as required and effective on January 1, 2026. They include the amendments to six IFRS Accounting Standards introduced by:
- Amendments to the Classification and Measurement of Financial Instruments;
- Annual Improvements to IFRS Accounting Standards — Volume 11;
- Contracts Referencing Nature-dependent Electricity; and
- the revised IFRS Practice Statement 1 Management Commentary.
The amendments from Disclosures about Uncertainties in the Financial Statements—Illustrative Examples, issued in November 2025, are also included in these editions.
IESBA Snapshot: The Firm Culture and Governance Viewpoints and Dialogues
The IESBA posted a Snapshot that focuses on its Firm Culture and Governance Project.
IESBA and IAASB Launch Joint Stakeholder Survey to Shape 2028-2031 Strategies
The IESBA and the IAASB launched a joint global stakeholder survey, marking the beginning of work toward their respective Strategies and Work Plans (SWPs) for 2028–2031 — a period of expected significant change in the global audit, assurance, and ethics landscape. The survey focuses on three principal areas:
- Strategic positioning for 2028–2031;
- Key environmental trends shaping the future of audit, assurance, ethics, and independence; and
- Opportunities for joint or parallel action.
The survey seeks input from stakeholders and is open until May 15.
The Role of the Auditor in Digital Assets: Present and Future
The CAQ shared a publication, The Role of the Auditor in Digital Assets: Present and Future. The digital asset ecosystem is developing rapidly, and the CAQ is increasingly seeing market participants, including public companies, engage with digital assets. Download this publication to learn how auditors can build on their existing expertise to bring increased trust and transparency to companies’ digital asset operations, and explore:
- The current state of the digital asset ecosystem, including regulatory developments;
- How auditors are well-positioned to provide attestation services to enhance trust in the digital asset ecosystem; and
- Considerations and questions for boards, regulators, and policymakers as the digital asset ecosystem continues to evolve.
Discussion Document on Monitoring Inflation in Certain Countries
The CAQ posted a Document for Discussion: Monitoring Inflation in Certain Countries as of November 2025. The document provides a framework for compiling inflation data to assist registrants in monitoring inflation statistics in connection with their determination of the inflationary status of countries in which they have operations. The document observes that Argentina, Burundi, Ethiopia, Ghana, Haiti, Iran, Lao P.D.R., Lebanon, Malawi, Myanmar, Nigeria, Sierra Leone, South Sudan, Sudan, Suriname, Turkey, Venezuela, Zimbabwe have three-year cumulative inflation rates exceeding 100% in the most recent annual period reported.
Statement on Incoming PCAOB Chair
The CAQ released the following statement:
“The CAQ congratulates the newly appointed and returning members to the Public Company Accounting Oversight Board. We look forward to working collaboratively with the PCAOB as they carry out their work. The CAQ remains committed to engaging constructively with the PCAOB to support a robust audit environment that serves investors, public companies, and the capital markets.”
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).