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.
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In This Issue
Statement on Departure of Commissioner Hester Peirce
SEC Chairman Paul S. Atkins and Commissioner Mark T. Uyeda issued a statement on the departure of Commissioner Hester Peirce.
SEC Announces Roundtable on Machine-Understandable Data in the Age of Super Intelligence
The SEC announced that it will host a roundtable on November 9, 2026, to discuss the use of machine-understandable data and Super Intelligence (SI) and related risks and costs. The roundtable will be open to the public and held at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C., from 9 a.m. to 3:30 p.m. EST. The discussion will be streamed live on SEC.gov, and a recording will be available at a later date. For more information and the full agenda, visit the event webpage.
SEC Announces Fiscal Year 2027 Examination Priorities
The SEC announced the Division of Examinations’ Fiscal Year 2027 examination priorities.
SEC Updated Questions and Answers for Corporation Finance Interpretations (CFIs)
The SEC updated the CFIs around the following topics:
- Securities Act Rules – CFIs
- Securities Act Forms – CFIs
- Exchange Act Forms – CFIs
- Exchange Act Forms – CFIs
- Specific Exchange Act Topics – Exchange Act Section 16 and Related Rules CFIs
- Specific Exchange Act Topics – Proxy Rules and Schedules 14A/14C
- Regulations – Regulation S-K
SEC Approves Targeted Amendments to QC 1000
The SEC approved targeted amendments to QC 1000, A Firm’s System of Quality Control. In a statement, PCAOB Chairman Logothetis stated “The approval of QC 1000 is a significant milestone for the PCAOB. It continues our efforts to refocus on our core mission by strengthening the effectiveness of our standards while also preserving the rigor our U.S. capital markets deserve.”
The amendments become effective on December 15, 2026.
Board Member Hauptman Hosts PCAOB Forum for Small Business Auditors and Broker-Dealer Auditors in Richardson, Texas
The PCAOB hosted an in-person PCAOB forum on November 5, 2026, for auditors of small businesses and broker-dealers. The one-day-event, part of a series of 2026 forums, was hosted by Board Member Kyle S. Hauptman at the University of Texas at Dallas. A recording of the event will be made available on the PCAOB’s website.
PCAOB Investor Advisory Group Held a Meeting on October 21
The PCAOB held a meeting of its Investor Advisory Group on October 21, 2026. Topics of discussion at the meeting included the PCAOB’s inspections modernization efforts and a presentation from members of the IAG on decision-useful critical audit matters, among others. A detailed agenda was posted on the event page prior to the meeting, and a recording of the livestream was posted on that page after the event.
PCAOB Staff Update on 2025 Inspections of Public Company Audits Shows Continued Audit Quality Improvement
The PCAOB released a new staff Spotlight publication, Staff Update on 2025 Inspections of Public Company Audits. Staff observed continued improvement in audit quality across a broad range of inspected firms.
PCAOB Standards and Emerging Issues Advisory Group Met on October 30
The PCAOB held a meeting of its Standards and Emerging Issues Advisory Group on Friday, October 30, 2026. Topics of discussion at the meeting included PCAOB standard setting and the PCAOB’s inspections modernization efforts, among others. A recording of the livestream was posted on the event page after the meeting.
PCAOB Issues Proposal to Modernize Rules Related to Auditor Comfort Letters
The PCAOB held an open meeting on November 3, 2026, at which it voted to issue for public comment proposed targeted amendments to AS 6101, Letters for Underwriters and Certain Other Requesting Parties. A recording is available on the PCAOB’s event page. The PCAOB is seeking stakeholder feedback on the proposal during the public comment period that closes on January 4, 2027.
FASB Issues Proposed 2027 DQC Rules Taxonomy
The FASB staff issued Proposed 2027 Data Quality Committee Rules Taxonomy (DQCRT) for public comment. The comment period for the proposed 2027 DQCRT ends on November 20, 2026. Comments should be submitted directly to the FASB.
FASB Seeks Public Comment on Proposal to Clarify the Consideration Payable to a Customer Guidance
The FASB issued a proposed Accounting Standards Update (ASU) that would clarify when payments made on behalf of a customer, or to a customer of an entity’s customer, should be accounted for as consideration payable to a customer under Topic 606, Revenue from Contracts with Customers. Stakeholders are encouraged to review and comment on the proposal by November 23, 2026.
Financial Accounting Standards Advisory Council (FASAC) Meeting Recap: September 17, 2026
The FASB posted a recap of the FASAC meeting held on Thursday, September 17, 2026.
FASB Seeks Public Comment on Proposed Targeted Improvements to the Accounting for Equity Method Investments
The FASB issued a proposed ASU that would improve the operability of the accounting for equity method investments. Stakeholders are encouraged to review and provide comments on the proposed ASU by January 11, 2027.
AICPA Releases Guidance to Help Auditors Address the Use of AI in Financial Reporting and Auditing
The AICPA issued Artificial Intelligence (AI) Considerations for Financial Statement Auditors, a new practice aid for auditors that provides a framework for understanding how artificial intelligence affects the financial statement audit in two key areas: when an organization uses AI in its financial reporting or controls, and when auditors use AI-related technology in performing the audit.
Auditors Meet Urgent Demand for AI Assurance With New Offering From AICPA and Artificial Intelligence Underwriting Company (AIUC)
The AICPA and AIUC announced they are rolling out a joint assurance certification that provides the first comprehensive, independent review of business risk related to AI systems and agents.
AICPA Proposes Update of SOC 2 Trust Services Criteria to Enhance the Relevance, Usability, and Value of CPAs’ Reports
The AICPA is seeking comment on a proposed SOC 2 Trust Services Criteria update that represents a significant modernization of the framework used by CPAs to evaluate controls over information systems. The AICPA’s SOC 2 Working Group is seeking public comment on the exposure draft through January 15, 2027.
FRC Releases Guidance to Support Auditors Get Ahead on Reducing Boilerplate Language
The Financial Reporting Council (FRC) published a Staff Guidance Note to support auditors who choose to adopt revised ISA (UK) 700 Forming an Opinion and Reporting on Financial Statements early, ahead of it coming into effect on December 15, 2026.
New Thematic Reviews Provide Practical Examples to Strengthen Corporate Reporting
The FRC published two thematic reviews highlighting practical opportunities for companies to strengthen the quality, clarity, and usefulness of their corporate reporting The reviews relate to:
- Intangible value drivers, and
- Financial instruments.
FRC Strengthens Audit Quality With Revised Standards on Assessing Risks Associated With Non-compliance With Laws and Regulations
The FRC revised two auditing standards to strengthen audit quality through a clearer and more effective risk-based approach when considering whether there is a risk of material misstatement as a result of non-compliance with laws and regulations by entities. The FRC has published:
- ISA (UK) 250 Revised Consideration of Laws and Regulations in an Audit of Financial Statements
- ISA (UK) 270 Special Considerations for Audits of Public Interest Entities – Communicating and Reporting to an Appropriate Authority Outside the Entity
These revised standards will be effective for audits of financial statements for periods beginning on or after December 15, 2027.
International Auditing and Assurance Standards Board (IAASB) Launches Interactive Digital Technology Catalog
The IAASB launched an interactive digital version of its Technology Catalog, making it easier for stakeholders to explore emerging technologies and related developments affecting audit and assurance — and see how the IAASB is considering them across its work program.
October 2026 IASB Agenda and Meeting Papers Now Available
The International Financial Reporting Standards (IFRS) Foundation announced that the agenda, papers, and meeting summary of the October 27-28 International Accounting Standards Board (IASB) meeting are now available.
IASB Decision: October 2026 Meeting
The IASB decided to proceed with targeted amendments to the IFRS for Small and Medium‑Sized Entities (SMEs) Accounting Standard that will introduce a consolidation exception for eligible SMEs that have an investment entity parent. The IASB expects to issue the amendments before the end of 2026. The amendments will take effect with the third edition of the IFRS for SMEs Accounting Standard for reporting periods beginning on or after January 1, 2027.
IFRS Foundation Trustees Approve 2027 Budget and Progress Delivery of Five-Year Plan
The IFRS Foundation Trustees approved the 2027 budget and focused on implementation of the Foundation’s five-year operating and financing plan when they met on October 20-22, 2026.
CAQ Appoints Dave Sullivan as Chief Executive Officer
The CAQ announced the appointment of Dave Sullivan as its Chief Executive Officer. Sullivan brings deep experience and a strong commitment to the CAQ’s public-interest mission at a time of significant change in corporate reporting, technology, and audit oversight. “I am grateful to the CAQ Governing Board for the opportunity to lead an organization whose mission is central to investor confidence and the strength of our capital markets,” said Sullivan. “I look forward to working with the CAQ team and stakeholders across the financial reporting ecosystem to advance audit quality, strengthen trust in financial reporting, and help shape the future of our profession.”
Upskilling Auditors for Evolving Investor Needs: A Conversation With Deloitte’s Susan Klink
The CAQ shared a blog post on its conversation with Susan Klink, Chief People Officer at Deloitte & Touche LLP, about how the profession is preparing public company auditors to meet evolving investor expectations. During the conversation, Klink discussed the following:
- What it takes to prepare the future of the profession for shifting investor expectations, new technologies, and more complex reporting
- How Deloitte’s professionals are using technology in their day-to-day audit work, and where human oversight fits in
- Beyond new tools, how Deloitte develops an auditor’s capabilities over the course of their career
Comment Letter: SEC Regulation Crypto Assets
The CAQ submitted a comment letter to the SEC that responds to its proposed rules titled Regulation Crypto Assets. The CAQ continues to support the SEC’s objective of providing regulatory clarity related to crypto assets. The comment letter specifically offers views on the assurance requirements of financial statements for entities utilizing the fundraising exemption and accounting and auditing considerations for crypto asset issuers.
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