October 8, 2026
 

Public Policy and Technical Alert | September 2026

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

SEC

SEC Investor Advisory Committee Hosted Meeting on September 10

The SEC’s Investor Advisory Committee hosted a public meeting at the SEC Headquarters in Washington, D.C., on September 10, 2026, to discuss artificial intelligence technologies in the public markets and the SEC’s Regulation National Market System rules. The meeting was webcast on the SEC website and consisted of two panels:

  • AI Technologies and the Public Markets Information Ecosystem
  • Regulation National Market System

The full agenda is available on the committee’s webpage.

Draft 2027 SEC Taxonomies

The SEC announced that the draft 2027 update to the SEC taxonomies is now available for feedback on the technical design of the taxonomies. Technical feedback is requested via email no later than 4 p.m. ET on November 16, 2026.

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

The SEC updated the CFIs around the following topics:

Statement on Fair Value Measurement and Disclosure Considerations for Private Assets

The SEC issued a statement by Kurt Hohl, Chief Accountant, and Brian Daly, Director, Division of Investment Management, on fair value measurement and disclosure considerations for private assets.

​​PCAOB

At September 9 Open Meeting, PCAOB Adopts Amendments to Quality Control Standard

The PCAOB held an open meeting on September 9, 2026, during which it adopted amendments to QC 1000, A Firm’s System of Quality Control, the PCAOB’s quality control standard, and related amendments to PCAOB forms and the QC reporting rule. The amendments will improve alignment, where appropriate, with other quality management standards and seek to 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.

The adopted amendments do not change the effective date of QC 1000, which is December 15, 2026. The amendments are subject to approval by the Securities and Exchange Commission (SEC). If approved by the SEC, the amendments to QC 1000 and to the related PCAOB rule and forms will become effective on December 15, 2026.

A recording of the open meeting can be found on the PCAOB’s website.

PCAOB Concludes 2026 Conference on Auditing and Capital Markets

The PCAOB on September 11, 2026, concluded its 13th annual Conference on Auditing and Capital Markets, an event designed to foster rigorous economic research on audit-related topics, including the economic impact of auditing, audit regulation, and audit oversight on capital markets. The conference agenda is available and links to the working papers presented at the conference will remain available through October 11, 2026.

PCAOB Updates Standard-Setting, Research, and Rulemaking Agendas After First-Ever Public Comment Period

The PCAOB updated its standard-setting, research, and rulemaking agendas, reflecting the Board’s current priorities and stakeholder feedback.

FASB

FASB Seeks Public Comment on Proposed Codification Improvements

The FASB published a proposed Accounting Standards Update (ASU) focused on targeted improvements to the FASB Accounting Standards Codification. Stakeholders are encouraged to review and provide input on the proposed ASU by November 19, 2026.

FASB Issues Standard to Improve Investment Company Fair Value Reporting

The FASB issued an ASU that improves how investment companies such as mutual funds measure the fair value of an equity security that is subject to a contractual sale restriction.

FASB Seeks Public Comment on Proposal to Improve Accounting for Residential Mortgage Servicing Rights

The FASB released a proposed ASU intended to improve accounting guidance for residential mortgage servicing rights. Stakeholders are encouraged to review and provide comments on the proposed ASU by November 9, 2026.

​​​​​​International

Financial Reporting Council (FRC) Sets Out Vision for Modern and Effective Regulation

The FRC published an update to Our Approach to Regulation, setting out how the FRC’s regulatory approach will continue to support growth, build trust, and drive confidence in U.K. markets.

FRC Publishes Final Revisions to U.K. Standards on Using the Work of an Auditor’s Expert

The FRC revised one U.K. auditing and one U.K. assurance standard to maintain alignment with changes made to equivalent international standards issued by the IAASB. The revised standards are:

  • ISA (UK) 620 (Revised September 2026) – Using the Work of an Auditor’s Expert
  • ISAE (UK) 3000 (Revised September 2026) – Assurance Engagements Other Than Audits or Review of Historical Financial Information.

The revised standards will be effective for audits of financial statements for periods commencing and assurance reports dated on or after December 15, 2026.

International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) Annual Report Highlights a Year of Global Engagement, Collaboration, and Public Interest Leadership

The IAASB and the IESBA released their 2025 Joint Annual Report, Building Trust Through Dialogue, Leadership, and Standards, highlighting a year of global engagement, strengthened collaboration, and continued commitment to advancing high-quality international standards in the public interest.

International Accounting Standards Board (IASB) Seeks Investor Views on Cash Flow Information Reported by Financial Institutions

The IASB launched a short survey to understand how investment professionals use cash flow information when analyzing the financial statements of financial institutions. The IASB is seeking investor views by September 25, 2026.

IASB September 2026 and Accounting Standards Advisory Forum (ASAF) October 2026 Agenda and Meeting Papers Now Available

The International Financial Reporting Standards (IFRS) Foundation announced that the IASB September 2026 and ASAF October 2026 agenda and meeting papers are now available. The September IASB Update and podcast also available.

IASB Decision: September 2026 Meeting

The IASB concluded its technical discussions on the Equity Method project, bringing it closer to completion. The project will result in a revised IAS 28 Investments in Associates and Joint Ventures that will address questions on how to apply the equity method, reducing diversity in practice. The revised IAS 28 will be effective for reporting periods beginning on or after January 1, 2029, with early application permitted. The IASB expects to issue the revised IAS 28 in the first half of 2027.

IASB Seeks Stakeholder Feedback on Hedge Accounting Requirements in IFRS 9 and IFRS 7

The IASB published a Request for Information to review its hedge accounting requirements. This review sits across two IFRS Accounting Standards:

  • the hedge accounting requirements in IFRS 9 Financial Instruments; and
  • the hedge accounting disclosure requirements in IFRS 7 Financial Instruments: Disclosures.

The Request for Information is open for comment until January 26, 2027.

Now Available: 2026 IESBA Handbook, Including the Sustainability Standards

The IESBA released the 2026 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). This edition includes the IESBA’s sustainability-related standards and the new IESBA standard on using the work of an external expert. The 2026 Handbook replaces the 2025 edition.

New IESBA Staff Q&As Support Implementation of Global Ethics and Independence Standards for Sustainability Assurance

The IESBA released a new Questions & Answers (Q&As) publication to support sustainability assurance practitioners, jurisdictional standard setters, professional accountancy organizations, and accreditation bodies as they adopt, implement, or apply the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA). Specifically, the new Staff Q&As address matters relating to:

  • Effective date and transitional provisions
  • Rotation of engagement leaders and other key sustainability assurance leaders
  • Non-assurance services

CAQ

Comment Letter to the PCAOB on Draft 2026-2030 Strategic Plan Goals and Objectives

The CAQ submitted a comment letter in response to the PCAOB request for comment on its Draft 2026-2030 Strategic Plan Goals and Objectives. The CAQ supports the strategic plan and recommends that the Board focus on four key areas as it moves toward implementation:

  • The importance of organizational culture, professional development, and expertise
  • Emphasizing execution, prioritization, and coordination with the SEC
  • Continuing the evolution of inspections and inspections reporting
  • Enhancing the role of the Office of the Chief Auditor in standard setting, implementation support, and interpretation

ICFR’s Role in the Public Company Accountability Framework

The CAQ posted an article written by Dennis McGowan, CPA, Vice President, Professional Practice and Anti-Fraud Initiatives, on the role of internal control over financial reporting in the public company accountability framework. McGowan discusses the following topics:

  • Why ICFR Matters Within the Financial Reporting Ecosystem
  • Why Emerging Risks Increase the Value of Independent Assurance
  • Why a Tailored Approach Can Maintain Confidence

PCAOB Developments & Priorities: What Audit Committees Need to Know

The CAQ will host a webinar for audit committee members and those who work with and support audit committees in their financial reporting oversight role on October 15, 2026, at 12:00 p.m.

Join PCAOB Board Member Steve Laughton and Weyerhaeuser Audit Committee Chair Sara Lewis for a discussion of the PCAOB’s current priorities and initiatives, followed by a conversation on the practical implications for audit committee oversight. Topics will include the PCAOB’s efforts to modernize its inspection program; communications with audit committees; considerations of emerging risks, including AI and practical steps audit committees take to strengthen auditor oversight; and support audit quality.

Audit Committee Practices Report: Common Threads Across Audit Committees

The fifth edition of the Audit Committee Practices Report, a joint initiative of Deloitte’s Center for Board Effectiveness and the CAQ, offers audit committee members and governance professionals a practical benchmark for peer practices and insights for setting priorities in the year ahead. Key findings include:

  • Enterprise risk management (ERM) is at the top, even as cybersecurity risk remains pervasive
  • AI governance is a priority, but committee confidence and oversight maturity are still evolving
  • High-quality engagement and consistent communication are setting the standard for effectiveness

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).  
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