Public Policy and Technical Alert | June 2026

In This Issue

SEC Updated Questions and Answers for Corporation Finance Interpretations (CFIs)

The SEC updated the CFIs around the following topic:

• Securities Act Sections

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PCAOB Issues Proposed Amendments to QC 1000 and Seeks Public Comment

The PCAOB held an open meeting on June 9, 2026 where they approved and subsequently issued for public comment a supplemental release regarding narrow, targeted proposed amendments to QC 1000, A Firm’s System of Quality Control, and related amendments to PCAOB forms and the QC reporting rule. If adopted, the amendments would improve coherence, where appropriate, with other quality management standards and potentially would reduce compliance costs without compromising the PCAOB’s statutory mission to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. A recording was made available after the meeting concluded. The deadline for public comment is July 9, 2026.

PCAOB Published Annual Report on Broker-Dealer Audits

The PCAOB released its Annual Report on the Interim Inspection Program Related to Audits of Brokers and Dealers. A separate publication – Supplementary Information Related to Audits of Brokers and Dealers – accompanies the report.

PCAOB Seeks Stakeholder Input on Its Standard-Setting and Research Agendas

The PCAOB opened a public comment period for stakeholders to provide input on potential future areas of focus for standard setting, building on the dialogue initiated with the standard-setting-related questions included in its Strategic Priorities Request for Comment in March. The PCAOB is also seeking feedback on revisiting its general approach to standard setting and considering the potential impact of the recent SEC proposal regarding semiannual reporting on the PCAOB’s suite of standards. Comments will be accepted through August 7, 2026.

PCAOB Staff Launches Firm Consultation Process to Enhance Clarity and to Support Application and Implementation of PCAOB Standards

The PCAOB announced the establishment of a Firm Consultation Process, led by its Office of the Chief Auditor (OCA), designed to provide more timely and consistent guidance from PCAOB staff. The new process will allow registered public accounting firms to submit questions directly to OCA staff and receive informal staff views regarding the implementation of new standards and application of existing standards.

Chief Auditor Barbara Vanich to Depart the PCAOB

The PCAOB announced that Chief Auditor Barbara Vanich will leave the PCAOB on July 15, 2026, after more than 17 years of service. “I have greatly valued Barb’s expert advice – her accomplishments at the PCAOB have been extraordinary,” said PCAOB Chairman Demetrios (Jim) Logothetis. “We thank her for her leadership and dedication, and we wish her well as she embarks on a new professional opportunity.”

Investor Advisory Committee (IAC) Meeting Recap: May 28, 2026

The FASB posted a recap of the IAC meeting held on May 28, 2026. Topics discussed at the meeting include:

• Emerging Issues and Trends
• Cash Equivalents and Certain Digital Assets
• Hedge Accounting
• Disaggregation of Income Statement Expenses (DISE)
• Borrower’s Accounting for Debt Restructurings

FASB Seeks Public Comment on Proposal to Improve Accounting Guidance for Certain Market-Return Cash Balance Plans

The FASB published a proposed Accounting Standards Update (ASU) intended to improve accounting guidance for certain market-return cash balance plans. The amendments in this proposed ASU would specify the discount rate required to be used to measure the benefit obligation for certain market-return cash balance plans. Stakeholders are encouraged to review and provide comments on the proposed ASU by August 10, 2026.

FASB Seeks Public Comment on Proposed Targeted Improvements to Hedge Accounting Guidance

The FASB published a proposed Accounting Standards Update (ASU) intended to make targeted improvements to interest rate risk hedging and net investment hedging accounting guidance. Stakeholders are encouraged to review and provide comments on the proposed ASU by August 17, 2026.

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AICPA Seeks Feedback on Proposed Strategic Plans for Professional Ethics Division and Peer Review Board

The AICPA seeks public comment on 2027-2030 strategic plan proposals drafted by its Professional Ethics Executive Committee (PEEC) and Peer Review Board (PRB). The two strategic plan proposals pose specific questions for stakeholders who wish to comment. The deadline for feedback is August 31, 2026.

AICPA and the Chartered Institute of Management Accountants (CIMA) Launched Rise2040: Shaping the Future of Finance and Accounting

The AICPA and the CIMA launched Rise2040: Shaping the Future of Finance and Accounting, a global, profession-led initiative designed not simply to anticipate the future of the profession but to actively shape it.

Definition of Public Interest Entity: Proposed Revisions to the Code of Professional Conduct

The AICPA released an exposure draft that proposes revisions to the definition of “public interest entity” in the Code of Professional Conduct (ET sec. 0.400.44) to better align the definition with regulatory thresholds established by the Federal Deposit Insurance Corporation and the National Association of Insurance Commissioners. Comments are due by September 15, 2026.

Onset of Mandatory Sustainability Requirements Begins to Impact Global Reporting, Study by International Federation of Accountants (IFAC), AICPA, and CIMA Finds

The AICPA announced that an updated report from the AICPA, CIMA, and IFAC shows the global sustainability reporting ecosystem is becoming less fragmented as more of the world’s largest companies begin to adopt or form plans to use the International Sustainability Standards Board (ISSB) standards and European Sustainability Reporting Standards (ESRSs).

Quarterly Consultations: June 2026

The Financial Reporting Council (FRC) launched a consultation on Using the Work of an Auditor’s Expert, seeking stakeholder views on narrow-scope amendments to ISA (UK) 620 and ISAE (UK) 3000. Stakeholders are invited to share their views on the FRC’s proposed key changes to ISA (UK) 620 and ISAE (UK) 3000. These include:

• Aligning definitions and responsibilities for evaluating an external expert’s competence, capabilities and objectivity
• Targeted revisions to requirements and application material in ISA 620 and ISAE 3000, which clarify practitioner responsibilities when using the work of an external expert

Stakeholders are invited to submit written responses to AAT@frc.org.uk by July 10, 2026.

FRC Refreshes Auditing Standards to Reduce Reporting Burden and Improve Transparency

The FRC revised three auditing standards to make auditor’s reports shorter, clearer, and more useful to investors, alongside new guidance clarifying auditor responsibilities under the revised U.K. Corporate Governance Code. The changes update three U.K. auditing standards – ISA (UK) 700, ISA (UK) 701, and ISA (UK) 720. The revised standards will take effect from December 15, 2026.

International Auditing and Assurance Standards Board (IAASB) Releases New International Standard on Sustainability Assurance (ISSA) 5000 Materiality FAQs to Support Consistent, Effective Application in Sustainability Assurance Engagements

The IAASB released a new Frequently Asked Questions publication to support implementation of the ISSA 5000, General Requirements for Sustainability Assurance Engagements. The document explains how both reporting entities and assurance practitioners apply materiality in the context of sustainability information.

International Financial Reporting Standards (IFRS) Foundation Proposes Updates to IFRS Accounting Taxonomy 2025

The IFRS Foundation published IFRS Accounting Taxonomy 2025 — Proposed Update 1 General Improvements. The deadline for submitting comments is September 7, 2026.

June 2026 International Accounting Standards Board (IASB) Agenda and Meeting Papers Now Available

The IFRS Foundation announced that the agenda, papers, and meeting summary of the June 22-24, 2026, IASB meeting are now available. The June IASB and IASB–FASB Update and podcast, and the IFRIC Update for the June IFRS Interpretations Committee meeting are also available.

IFRS for SMEs Accounting Standard: New Webcast and Module Available

The IFRS Foundation announced that a new webcast and module on the IFRS for SMEs Accounting Standard are available.

IASB Issues Amendments Clarifying the Fair Value Option in IAS 28

The IASB issued targeted amendments to clarify which investments in associates and joint ventures a company is eligible to measure using the fair value option in IAS 28 Investments in Associates and Joint Ventures. The amendments take effect when a company first applies IFRS 18 Presentation and Disclosure in Financial Statements.

Targeted Ethics Code Update on Firm Culture and Governance

The International Ethics Standards Board for Accountants (IESBA) announced that it will address firm culture and governance through a targeted update to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), following a decision on the way forward by the IESBA at its June 2026 board meeting in New York. An exposure draft is planned for December 2026, with final approval targeted by the end of 2027.

International Forum of Independent Audit Regulators (IFIAR) Issues Factsheet on Sustainability Assurance Survey

The IFIAR issued a public factsheet outlining key highlights and insights from the IFIAR’s recent sustainability assurance survey.

International Organization of Securities Commissions (IOSCO) Publishes Recommendations for Secondary Market Disclosure

The IOSCO published its Final Report on Recommendations for Secondary Market Disclosure. The guidance is structured around three main areas:

• Disclosure principles
• Content of disclosure
• Governance and internal controls

IOSCO Publishes Report on Supervisory Technology (SupTech)

The IOSCO published its Report on SupTech. The report is a summary of a survey of 49 jurisdictions on their current and expected future use of SupTech tools for supervision and regulatory oversight.

Audit Insider Webinar: July 2026

The CAQ held an Audit Insider Webinar for July 13, 2026, at 2:00 p.m. This hour-long webcast showcased regulatory reporting issues facing public companies and their auditors. It featured Kurt Hohl, SEC Chief Accountant and Heather Rosenberger, Chief Accountant in the SEC’s Division of Corporation Finance. Panelists discussed current initiatives underway at the SEC, including recent regulatory proposals. A replay is available here.

Comment Letter: Federal Deposit Insurance Corporation (FDIC) Proposed Rulemaking to Implement the GENIUS Act

The CAQ submitted a comment letter to the FDIC in response to the agency’s proposed rulemaking on GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers and Insured Depository Institutions. In the letter, the CAQ supports the FDIC’s objective to enhance transparency, reliability, and accountability for permitted payment stablecoin issuers. Specifically, the CAQ offers views on:

• Audits of financial statements for certain permitted payment stablecoin issuers;
• Examination of monthly composition reports; and
• Mechanisms to increase transparency and reliability of information reported by permitted payment stablecoin issuers, including examinations of internal controls over stablecoin operations and reserves.

May 2026 International Practices Task Force (IPTF) Joint Meeting Highlights

The CAQ shared the highlights of the May 2026 joint meeting of the IPTF and the SEC Staff. Topics addressed at the meeting include:

• Public Communications under IFRS 18 for SEC IFRS filers
• Presentation and Use of Reg G Exempt Performance Measures in an FPI’s Form 20-F or Other SEC Filings Outside of the Financial Statements
• Applicability of SAB Topic 4.C for MJDS issuers
• Reconciliations Required for Non-Issuer Financial Statements

Audit Committee Council (ACC) Comment Letter to the SEC: Semiannual Reporting

The ACC, an independent advisory committee of the CAQ, submitted a comment letter to the SEC in response to its Proposed Rule on Semiannual Reporting, File Number S7-2026-15. Key points included in the ACC letter:

• ACC supports the Proposed Rule providing all companies with the option to report on a semiannual basis.
• ACC support for the Proposed Rule is grounded in its optionality.
• It is appropriate for a company’s management, along with its audit committee, based on stakeholder outreach, to determine the appropriate frequency of interim financial reporting.
• Regardless of the cadence or the form, financial information provided to the capital markets must continue to be reliable.

Comment Letter: SEC Semiannual Reporting

The CAQ submitted a comment letter to the SEC in response to its Proposed Rule on Semiannual Reporting, File Number S7-2026-15. Key points included in the CAQ letter:

• The CAQ supports the Commission’s efforts to reduce the unnecessary regulatory burdens of being a reporting company and encourage more companies to go and remain public. In this effort, the CAQ believes that the Commission should further consider the root cause of the reporting burden associated with the current quarterly reporting framework.
• A choice to elect semiannual reporting would rest with management, guided by input from investors, boards of directors and audit committees.
• The reliability of financial information provided to the investing public is of paramount importance.
• Regardless of the reporting decision made by any company, public company auditors will continue to apply applicable professional standards and exercise independent professional judgment in serving the public interest as companies continue to seek to provide reliable financial information that meets the needs of investors and other stakeholders.