• Cybercrime Threatens Trust in Business – How Accountants Can Help

    May 16, 2019 Published: IFAC by Sylvia Tsen, Executive Director, Knowledge, Operations and Technology, IFAC and Stathis Gould, Deputy Director, Professional Accountants in Business, IFAC Cybercrime threatens trust and transparency in business and governments on a daily basis. As a customer, taxpayer, supplier or other stakeholder, we ask ourselves whether we can trust an organization

  • 4 key steps for auditors in assessing technology risks

    May 16, 2019 Published: Journal of Accountancy Emerging technology has brought a seemingly endless set of new risks to the clients that engage CPAs to perform audits. Unauthorized personnel can wreak havoc, data can get lost or become inaccessible, and third-party providers can be unreliable. Meanwhile, avoiding all these risks by avoiding the latest technology

  • How a lease with an attest client affects independence

    May 14, 2019 Published: Journal of Accountancy By Catherine R. Allen, CPA  Suppose you audit a company that leases apartments and office space to individuals and companies. Should you be allowed to lease your apartment from your client? Should your firm be allowed to lease office space from the client? Recently, the AICPA revised its

  • GDPR one year on: its impact on auditors and accountants?

    May 13, 2019 Published: Accountancy Europe by Julia Bodnarova Keeping our personal information private is a concern for us all. It’s been one year since the EU’s General Data Protection Regulation (GDPR) required all organisations processing data to review and adapt their documents and procedures. What the GDPR means in practice has been the topic of

  • ACCA Study reveals 55% of public misunderstand audit

    May 10, 2019 Published: The Accountant A research study conducted by the Association of Chartered Certified Accountants (ACCA) has revealed that 55% of the public believe auditors could prevent company failures. In addition 34% of the respondents said they expected auditors to always detect and report any fraud and 70% believed audit should evolve to

  • SEC addresses ICFR attestation for smaller companies  

    May 9, 2019 Published: Journal of Accountancy Fewer public companies would be required to obtain an attestation of their internal control over financial reporting (ICFR) from an independent outside auditor under amendments the SEC voted to propose Thursday. The amendments as proposed are designed to reduce costs for certain lower-revenue companies by changing the types

  • Credit losses standard tips for audit committees

    May 7, 2019 Published: Journal of Accountancy FASB’s new credit losses standard presents new challenges for company financial reporting teams, especially in financial services. The new standard requires a new current expected credit loss (CECL) model and is designed to enable financial reporting of credit losses that financial institutions are expecting. A new Center for Audit

  • PCAOB Posts Staff Preview of 2018 Inspection Observations

    May 6, 2019 Published: PCAOB The PCAOB posted to its website the Staff Preview of 2018 Inspections Observations. This staff preview includes, for the first time, good practices regarding efforts to improve audit quality. It also addresses areas of common deficiencies, observations on technology, and implementation of new accounting and auditing standards and rules. The preview

  • SEC proposes changes to disclosures on acquisitions and disposals

    May 3, 2019 Published: Journal of Accountancy The SEC on Friday proposed rules changes designed to provide investors improved information about acquired and disposed businesses while reducing the cost and complexity to businesses preparing disclosures. Currently, Rule 3-05 of Regulation S-X requires SEC registrants that acquire a significant business other than a real estate operation

  • Interest Rate Benchmarks Reform prompts potential changes to IFRS

    May 3, 2019 Published: The Accountant The International Accounting Standards Board (IASB) has proposed changes to financial instruments standards IAS 39 and IFRS 9 in response to the reform of interest rate benchmarks such as interbank offer rates (IBORs). The IASB has proposed to amend IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition

  • PCAOB board member wants auditors to be more vigilant about cybersecurity

    May 2, 2019 Published: AccountingToday The Public Company Accounting Oversight Board may begin asking auditors to vouch for cybersecurity controls at the companies they audit. PCAOB board member Kathleen Hamm called recently for more auditors to get involved in performing cybersecurity risk assessments after high-profile data breaches in recent years at all too many companies.

  • SEC, PCAOB actions against accountants declined steeply in 2018

    May 01, 2019 Published: AccountingToday By: Danielle Lee The U.S. Securities and Exchange Commission and Public Company Accounting Oversight Board finalized 45 enforcement actions involving accountants in 2018, marking a significant decline from the 75 finalized actions involving accountants in 2017, according to a new Cornerstone Research report released Wednesday. According to the report, “Regulatory Actions

  • Study on EU statutory audit reform Impact on costs, concentration and competition

    Impact on costs, concentration and competition April 30, 2019 Published: Accountancy Europe On 24 April 2019, Professor Marleen Willekens presented to & discussed with the Board of Accountancy Europe as well as with the Chairs and members of working groups the findings of her team’s recent study on the early effects of the Audit Reform. The study

  • Improving Audit Quality Using an Individual Recognition and Accountability Framework

    April 29, 2019 Published: IFAC By: CPA Australia, Chartered Accountants ANZ About this guide This guide has been developed by CPA Australia on behalf of the Australian Auditing and Accounting Public Policy Committee (APPC), which comprises representatives of BDO, Deloitte, EY, Grant Thornton, KPMG, PwC, Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia

  • FASB makes minor adjustments to financial instruments rules

    April 25, 2019 Published: Journal of Accountancy FASB issued clarifications and minor improvements Thursday to its recently issued accounting standards for credit losses, hedging, and recognition and measurement. The numerous amendments are included in Accounting Standards Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825,

  • Voices: 3 ways accountants can implement AI today

    April 24, 2019 Published: Accounting Today By: Hendrik Vordenbauenmen Artificial intelligence is poised to transform the finance and accounting industries with advancements that eliminate tedious tasks and free up time for financial staff to prioritize higher impact responsibilities. Yet a majority of businesses (80 percent) still haven’t employed AI in their workforce due to uncertainties around the

  • Lease Accounting: Getting ready for a new approach

    April 18, 2019 Published: The Accountant It is all go in the financial reporting world. With three key new IFRS standards taking effect in 2018/2019, companies need to get in shape to embrace the changes and provide stakeholders with the key information and explanations needed to understand the – sometimes huge – impact they will

  • China needs further reforms to make growth sustainable, greener and more inclusive

    April 16, 2019 Published: OECD The Chinese economy continues to slow as it rebalances, with headwinds including trade frictions and the weakening global economy undermining exports and creating new uncertainties. Policy should focus on long-term strategies to move the economy towards greater domestic consumption and services, enhancing economic efficiency and ensuring that future growth is

  • From Algorithms to Deep Learning, What You Need to Know About AI

    April 12, 2019 Published: IFAC By: Yasmine Hakimpour, CPA, CA, Principal, Audit & Assurance, Research, Guidance & Support Group, CPA Canada Artificial Intelligence (AI) is everywhere, and news articles and broadcasts, blog posts and podcasts constantly remind us how AI is “upgrading” just about everything. But what exactly is AI?  CPA Canada in collaboration with the American Institute

  • U.K. regulators recommend shake-up in audit market

    April 18, 2019 Published: AccountingToday The United Kingdom’s Competition and Markets Authority has released the final version of a long-awaited report on changes in the audit market, recommending separation of audit from consulting services, mandatory “joint audits” to enable firms outside the Big Four to develop the capacity needed to review the U.K.’s largest companies, and the

  • Yellow Book revisions update independence guidance

    April 17, 2019 Published: Journal of Accountancy By Catherine R. Allen, CPA, and Nancy Miller, CPA Auditors performing engagements under generally accepted government auditing standards (GAGAS) are subject to new rules reinforcing the principles of transparency and accountability under revisions published by the U.S. Government Accountability Office (GAO) in July 2018. The revised standards (also

  • Technology and the Profession–A Guide to ICAEW’s Work

    April 15, 2019 Published: IFAC By: David Lyford-Smith Since the 1990s, ICAEW has had an IT Faculty – a group of technology and accounting experts who are the “Voice of IT for ICAEW”.  The group helps produce guidance and thought leadership relating to the place of technology in the accountancy profession, researches the effects of

  • The GDPR’s transparency obligations are difficult but not impossible

    April 11, 2019 Published: ICAEW The EU GDPR is one the most significant changes in privacy in the past two decades, and companies need to fully understand its implications according to ICAEW. In its new guide, Data Protection and Transparency, ICAEW explains the transparency principle of the GDPR and gives essential guidance on how to comply

  • Ways to keep your talented CPAs

    April 8, 2019 Published: Journal of Accountancy By: Sarah Ovaska-Few Flexible scheduling can ward off burnout and help retain staff. Holding on to good people is a challenge, especially in the accounting profession, where the demand for skilled CPAs is high. To help with that, many firms have policies on the books allowing employees to

  • Voices: A revolution for accounting firms who are ready for change

    April 10 2019 Published: AccountingToday   There is a revolution underway in major accounting firms, at least for the ones who take up the challenge to meet the shifts occurring beneath their feet. For decades, the profession has operated on a foundation of expanding billable hours for increasingly complex yet still largely compliance-focused work. And

  • Global Ethics Board Sets Out Top Priorities, Publishes Ambitious 5-Year Strategy & Work Plan

    April 9, 2019 Published: IFAC- IESBA The International Ethics Standards Board for Accountants (IESBA) today released its Strategy and Work Plan, 2019-2023. Titled Elevating Ethics in a Dynamic and Uncertain World, the publication describes the board’s strategy and priorities toward the setting of high-quality, future-ready ethics standards for professional accountants that are widely adopted around the world. Building

  • Artificial intelligence

    April 8, 2019 Published: European Commission Commission takes forward its work on ethics guidelines The Commission presented today next steps for building trust in artificial intelligence by taking forward the work of the High-Level Expert Group. Building on the work of the group of independent experts appointed in June 2018, the Commission launched a pilot phase to

  • New Tone at the Top Highlights Ways Board Members Can Help Deliver All Pertinent Risk Information to the Board

    April 5, 2019 Published: The Institute of Internal Auditors When management is prepared to provide whatever information is requested, board effectiveness will improve and shareholders will benefit in the long run. According to recent surveys, a majority of directors indicate that the quality of management reporting to the board needs to improve, suggesting that boards

  • Lease accounting tips for public and private companies

    April 4, 2019 Published: Journal of Accountancy By Ken Tysiac Many public companies are not finished implementing FASB’s new lease accounting standard, and one-third of private companies say they are unprepared to comply with the new standard, according to a new survey. After filing earnings reports for the first quarter of 2019, 25% of public

  • CAQ updates auditor assessment tool

    April 3, 2019 Published: AccountingToday The Center for Audit Quality has released an updated version of its External Auditor Assessment Tool for audit committees to address recent changes in accounting standards and potential areas of risk. The document leverages the CAQ’s 2019 Audit Quality Disclosure Framework, and includes some new material about improving the audit committee members’

  • Position Paper Clarifies Internal Audit Roles In Fraud Prevention and Response

    April 3, 2019 Published: The Institute of Internal Auditors (IIA) By: Lake Mary The Institute of Internal Auditors (IIA) announced today the release of a new Position Paper, “Fraud and Internal Audit: Assurance Over Fraud Controls Fundamental to Success.” The new paper describes specific internal audit responsibilities regarding fraud prevention and detection. Internal auditors must have

  • Independent Regulatory Board for Auditors (IRBA): 17% of JSE- listed Companies rotate auditors in advance of MAFR

    April 1, 2019 Published: The Accountant Roughly 17% of Johannesburg Stock Exchange (JSE) main board listed companies have already voluntarily rotated auditors—four years early from the effective date of Mandatory Audit Firm Rotation (MAFR), according to the South African Independent Regulatory Board for Auditors (IRBA). The 64 companies that have rotated in the past two

  • Lease accounting: A private company perspective

    March 29, 2019 Published: Journal of Accountancy By Stephen G. Austin, CPA; Michael G. Fraunces, J.D.; and Alisia Scudder, CPA By now, most public companies in the United States have adopted the new lease accounting standards as required on Jan. 1, 2019. Companies with noncalendar fiscal year ends will adopt the new standards sometime over

  • IOSCO publishes first annual work program to enhance the efficacy of its work

    March 5, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions today published its first annual work program, to enhance the effectiveness of IOSCO and the impact of its policy work on global securities markets. The Board agreed on five priority issues for its work in 2019, based on the conclusions of the

  • The benefits of a digitally fit risk function

    March 27, 2019 Published: Journal of Accountancy By Neil Amato Risk functions that are up to speed with organizations’ digital initiatives are better able to manage risks in a transformative time. If people ignore their body’s signals and regularly fail to get proper rest, nutrition, and activity, they can become sluggish, get sick — or

  • AICPA issues guidance on prior-period audits

    March 26, 2019 Published: Journal of Accountancy A newly revised AICPA Technical Question and Answer (TQA) provides nonauthoritative guidance for performing an audit and reporting on an entity’s prior-period financial statements. For such audits, TQA 8100.03 states that the auditor should use, in their entirety, the auditing standards and form of the auditor’s report that are in

  • Firms defend Quarterly Reporting despite Trump’s urging of the SEC to investigate benefits of Semi-Annual Reports

    March 26, 2019 Published: The Accountant A number of firms have defended the benefits of quarterly reporting, following a tweet by President Trump in August which called the US’ Securities and Exchange Commission (SEC) to investigate the benefits of moving from quarterly reporting to semi-annual reporting. Following the initial tweet by Trump, which claimed semi-annual

  • The importance of conducting an annual fraud checkup

    March 21, 2019 Published: Accounting Today By: Kelly J. Todd The Centers for Disease Control and Prevention recommend annual checkups for individuals of all ages. Why? Because “regular health exams and tests can help find problems before they start.” Not only is this true for our personal health, but also for the health of companies.

  • PCAOB inspections to focus on Technological developments in 2019

    March 22, 2019 Published: The Accountant The Public Company Accounting Oversight Board (PCAOB) 2019 inspections are to focus on technological developments affecting audits. This will cover the use of audit software tools and also the audit response to risks associated with cybersecurity incidents, digital assets, and distributed ledgers. The PCAOB’s Inspection Outlook for Audit Committees

  • Cinco países de América Latina concentran la actividad fintech de la región

    20 de Marzo de 2019 Publicado: Inversor Latam El BID señaló que América Latina y el Caribe tienen una elevada tasa de exclusión financiera. Unos 210 millones de personas, equivalentes al 46% de la población adulta, no tienen una cuenta bancaria. Según estudio del Banco Interamericano de Desarrollo (BID), hay cinco países de América Latina que concentran el

  • ASB changes align GAAS with PCAOB standards

    March 1, 2019 Published: Journal of Accountancy The AICPA’s Auditing Standards Board (ASB) voted to issue a new auditing standard, Omnibus Statement on Auditing Standards — 2019, that will more closely align standards for auditors of nonpublic clients to the auditing standards of the PCAOB, in order to enhance audit quality in an effective and efficient manner. The

  • PCAOB Staff Provides Guidance in Advance of CAM Effective Dates

    March 18, 2019 Published: PCAOB The Public Company Accounting Oversight Board today released three staff guidance documents developed to support implementation of the new critical audit matter (CAM) requirements.  Auditors will soon be required to communicate CAMs in the auditor’s report under the standard, AS 3101, The Auditor’s Report on an Audit of Financial Statements When

  • First-year challenges of TCJA implementation require broader penalty relief

    March 15, 2019 Published: Journal of Accountancy By Melanie Lauridsen As the first filing season that implements the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, moves forward, many taxpayers are becoming frustrated to learn that their refunds are smaller or they owe money for the first time. The substantial uncertainty

  • PCAOB offers audit committees a preview of 2019 staff inspections

    March 14 2019 Published: AccountingToday The Public Company Accounting Oversight Board is giving corporate audit committees an overview of some of the key areas its inspection team will be looking at during upcoming audit firm inspections. The PCAOB has been undergoing dramatic changes in the past year, with an all-new board and senior staff, plus

  • Voices 3 technologies transforming accounting, finance and tax

    March 13, 2019 Published: AccountingToday The data is clear: when considering technology within an organization, the question is no longer whether to invest — it’s how. According to KPMG’s 2018 U.S. CEO Outlook, CEOs are thinking a lot about technology and data and analytics (D&A) for their organizations. Ninety-eight percent of CEOs view technology disruption

  • For internal auditors, innovation is a work in progress

    March 12, 2019 Published: AccountingToday More than three-quarters of internal audit groups (76 percent) are undertaking some form of innovation, according to a new survey by the consulting firm Protiviti, but only 31 percent have a roadmap for it in place. That means while the internal auditors are positioning themselves for the future, they still

  • UK´s FRC to be replaced

    March 12, 2019 Published: The Accountant The UK Government has backed the Kingman review, and will replace the Financial Reporting Council (FRC) with the Audit, Reporting and Governance Authority (ARGA). The Government is in the process of appointing new leadership at the FRC which will eventually transition into ARGA. The FRC’s CEO Stephen Haddrill announced

  • How SMEs Can Supercharge Their Growth Potential

    March 4, 2019 Published: IFAC Much has been written in recent years about a discernible shift in focus among business leaders and policymakers toward achieving SME growth. In particular, there has been a shift in focus away from how entrepreneurs start and run businesses to how they can grow them over time. Some of the

  • Accounting watchdog group objects to GASB proposal

    March 08 2019 Published: AccountingToday Truth in Accounting, a government watchdog group, is objecting to a proposed overhaul by the Governmental Accounting Standards Board in the financial reporting model for state and local governments and voiced its displeasure at a GASB hearing this week. GASB issued a Preliminary Views on Project No. 3-25 last September with the

  • Sikka: Audit outsourcing detrimental to quality

    March 06, 2019 Published: The Accountant At the official launch of the UK Labour Party’s report, Reforming the Auditing Industry, concerns were expressed over the amount of audit work that is outsourced by the Big Four and the affect it may have on audit quality. Prem Sikka, lead author of the report, noted that sources from