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
SEC Investor Advisory Committee Hosted a Meeting on March 12
The SEC’s Investor Advisory Committee held a public meeting at the SEC Headquarters in Washington, D.C., on March 12 to discuss public company disclosure reform, fund proxy voting, and a potential recommendation regarding the tokenization of equity securities. The meeting consisted of two panels:
- Public Company Disclosure Reform (recording available here)
- Fund Proxy Voting: Challenges, Costs, and Pathways to Modernization (recording available here)
The full agenda is available on the committee’s webpage.
SEC Clarifies the Application of Federal Securities Laws to Crypto Assets
The SEC issued an interpretation clarifying how the federal securities laws apply to certain crypto assets and transactions involving crypto assets. The Commission interpretation provides a coherent token taxonomy for digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
Updates to Questions and Answers for Corporation Finance Interpretations (CFIs)
The SEC updated the CFIs around the following topics:
PCAOB Announces New Audit Practitioner Fellowship Program
The PCAOB announced the launch of the Audit Practitioner Fellowship Program within the PCAOB’s Office of the Chief Auditor, a new initiative designed to bring additional experienced auditors with recent practical experience to the PCAOB to share their unique expertise with PCAOB staff. The application period will close on May 15, 2026.
PCAOB Announces Series of 2026 Forums for Auditors of Small Businesses and Auditors of Broker-Dealers
The PCAOB announced that it will continue its in-person series of events on auditing in the small business environment and on auditing broker-dealers. Board Member Mark Calabria will host the first scheduled forum on April 21, 2026, at the Hilton Chicago/Magnificent Mile Suites in Chicago, Illinois. There is no fee to attend the Chicago forum, but advance registration is required. Chairman Demetrios (Jim) Logothetis will host a forum on May 13, 2026, in Jersey City, New Jersey. Additional details will be provided closer to the date of the event. Additional events in 2026 and PCAOB Board Member participation in them will be announced at a later date.
At March 31 Open Meeting, PCAOB Approves a Request for Public Comment on the PCAOB’s Strategic Priorities
The PCAOB held an open meeting on Tuesday, March 31, 2026, and approved the issuance of a request for public comment to help inform the PCAOB’s strategic priorities. Comments are due by May 15, 2026. Additional information on the request and instructions on how to submit feedback can be found here.
FRC Announces Measures to Support Small Business Growth
The FRC announced a package of measures to make audits more proportionate and efficient for small and medium-sized enterprises (SMEs), helping to support their growth and access to capital.
FRC Introduces Evolved Approach to Audit Supervision
The FRC announced a major evolution of its audit supervisory model, introducing a more proportionate, effective, and integrated framework designed to enhance audit quality and reinforce resilience across the U.K. audit market. The FRC’s revised approach places more emphasis on firms’ Systems of Quality Management (SoQM), placing this at the heart of supervision activity. Implementation will begin in April 2026 for the largest firms, with further developments piloted during 2026-27.
Public Interest Oversight Board (PIOB) Seeks Applicants for International Auditing and Assurance Standards Board (IAASB) Practitioner Vacancies Beginning in 2027
The IAASB announced that the PIOB’s Standard-Setting Boards Nominations Committee is now accepting applications for three practitioner vacancies on the IAASB, with terms beginning January 1, 2027. The application window remains open until May 3, 2026.
Webcast: Overview of the Forthcoming International Financial Reporting Standards (IFRS) Accounting Standard: IFRS 20
The IFRS Foundation posted a webcast that provides an overview of the forthcoming IFRS 20 Regulatory Assets and Regulatory Liabilities. IFRS 20 requires a company subject to a specific type of rate regulation to provide information about its regulatory assets, regulatory liabilities, regulatory income, and regulatory expense. IFRS 20 is expected to be issued in the second quarter of 2026 and will be effective for annual reporting periods beginning on or after January 1, 2029. It will replace IFRS 14 Regulatory Deferral Accounts.
International Accounting Standards Board (IASB) Podcast on the February 2026 Meeting Highlights
The IASB announced that its podcast covering highlights from the IASB meeting held on February 24-25, 2026, is now available.
March 2026 IASB Agenda and Meeting Papers Now Available
The IFRS Foundation announced that the agenda, papers, and meeting summary of the March 2026 IASB meeting are now available.
IFRS Foundation Publishes 2025 Annual Report: Fit for the Future
The IFRS Foundation published its annual report and audited financial statements for the year ended December 31, 2025, setting out its financial results, the progress made in delivering its public-interest mission, and the steps taken to ensure the organization is fit for the future.
International Ethics Standards Board for Accountants (IESBA) Launches Firm Culture and Governance Newsletter Series
The IESBA launched the Firm Culture and Governance Update, a new five-part newsletter series dedicated to exploring the relevance — and the reality — of building strong ethical culture and governance within accounting firms. Through interviews, case studies, and IESBA Viewpoints, the series aims to broaden global discussion and gather insights that will shape the future direction of the project.
Emily Fitts Appointed Chair of the Monitoring Group
The International Organization of Securities Commissions (IOSCO) announced the appointment of Emily Fitts as the new Chair of the Monitoring Group, effective immediately. Fitts is the Deputy Chief Accountant – International of the SEC. She succeeds Ryan Wolfe, who served as MG Chair between April 2025 and March 2026.
IOSCO Publishes Updated Statement on Non-GAAP Financial Measures
IOSCO published an updated Statement on Non-GAAP (Generally Accepted Accounting Principles) Financial Measures. This Statement is an update to the 2016 and 2002 IOSCO Statements on Non-GAAP Financial Measures, highlighting IOSCO’s commitment to clear, useful and standardized disclosures to reduce risks for investors and other users of financial information.
Bringing Trust to the Digital Asset Ecosystem
The CAQ posted an article written by Erin Cromwell, CPA, Senior Manager, Professional Practice, about the audit profession’s role in building trust in innovations in the digital asset landscape. The CAQ’s latest publication, The Role of the Auditor in Digital Assets: Present and Future, provides an analysis of the digital asset landscape. Cromwell discusses:
- Challenges in an Evolving Ecosystem
- The Role of the Auditor
- The Future of Trust
Annual Institutional Investor Survey
The CAQ released its Annual Institutional Investor Survey, which is based on research conducted among 300 institutional investors in the United States. This report explores how investors view the role of the audit amidst evolving expectations for assurance, innovation, and oversight. It provides further insights into investor priorities and perspectives as the audit profession navigates change, exploring the key themes shaping confidence and trust in today’s capital markets.
The CAQ posted an article written by Amy O’Connor, Vice President, Public Affairs, at the CAQ, about the key findings on trust in the audit from the 2025 Institutional Investor Survey. O’Connor discusses the top three areas that the profession should consider to continue securing investor confidence:
- 35% of institutional investors express concern about auditor independence;
- over 85% of investors want to see improvements in AI, cybersecurity, and other corporate disclosures; and
- over 95% of investors report that regulatory oversight increases their confidence in audits.
Letter to the PCAOB on QC 1000 Implementation Experience and Costs
The CAQ submitted a letter to the PCAOB that provides additional insights based on firms’ experience implementing A Firm’s System of Quality Control and Other Amendments to PCAOB Standards, Rules, and Forms (QC 1000). In addition, the CAQ provides information about the costs to implement QC 1000 based on data collected from certain member firms. This letter is a supplement to the letter the CAQ previously submitted to the PCAOB on July 23, 2025, regarding QC 1000.
Comment Letter: Regulation S-K, S-X
The CAQ submitted a comment letter to the SEC in response to a January 13, 2026 statement from Chairman Paul S. Atkins encouraging members of the public to provide their views on how the SEC can amend the requirements in Regulation S-K to focus on eliciting disclosure of material information and avoid compelling the disclosure of immaterial information. Division of Corporation Finance Director Jim Moloney reiterated this request in a statement on February 13, 2026 encouraging the public to submit targeted, concrete recommendations relating to Regulation S-X. The CAQ strongly supports the SEC’s efforts and is pleased to respond to these requests.
Voices From the Audit Committee: A Supplemental Report
The CAQ released a resource that supplements findings from the Audit Committee Practices Report. The annual report by the CAQ and Deloitte offers data-driven insights into priorities, oversight responsibilities, and committee effectiveness. Explore the resource and learn what audit committee members told the CAQ and Deloitte about improving meetings through better presentations, more discussion and engagement, and higher quality pre-reads.
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).