• 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

  • FRC issues Position Paper: next steps for development of Ethical and Auditing Standards

    March 05, 2019 Published: Financial Reporting Council (FRC) The FRC has issued a position paper which sets out how Ethical and Auditing Standards will be developed to respond better to the needs of users of audited financial information, following the recent call for feedback. The paper sets out the issues that will be developed to support a public

  • FRC consults on stronger Going Concern standard for auditors

    March 4, 2019 Published: Financial Reporting Council (FRC) The Financial Reporting Council (FRC) proposes to increase the work required of auditors when assessing whether an entity is a going concern. The consultation on important revisions to International Standard on Auditing (ISA) (UK) 570 Going Concern  follows concerns about the quality and rigour of audit and well-publicised corporate failures

  • Consultation Paper, Extended External Reporting (EER) Assurance

    February 28, 2019 Published: IAASB The IAASB is consulting on its progress in developing draft guidance in the first phase of its EER Assurance project. Public input is requested by June 21, 2019. EER encapsulates many different forms of reporting, including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about environmental,

  • Professional Ethics Executive Committee (PEEC) issues new and revised interpretations

    March 1, 2019 Published: Journal of Accountancy Confidential client information and independence were addressed. The AICPA Professional Ethics Executive Committee has adopted revised interpretations of the “Independence Rule” related to leases and client affiliates and a new interpretation under the “Confidential Client Information Rule” of the AICPA Code of Professional Conduct. The revised “Leases” interpretation (ET §1.260.040) states that self-interest,

  • Building a Future-Ready PAO (Professional Accountancy Organizations

    February 14, 2019 Published: IFAC By: Joseph Bryson and Manuel Arias In November 2018, over 100 participants from 70 jurisdictions gathered at an IFAC workshop during the World Congress of Accountants in Sydney, Australia, to discuss the accountancy profession’s relevance in an ever-changing and challenging environment and professional accountancy organizations (PAOs) roles. These are the key workshop

  • Auditors, bitcoin and the need for mutual trust

    February 25, 2019 Published: Accountancy Europe Embracing digitalisation will strengthen your business and grow your analytical skills. But it will also mean managing an ethical and regulatory maze, according to Olaf Riedel, Partner for Digital at Ernst & Young. He has no doubt about the potential benefits on the horizon: “Do I see opportunities coming

  • PCAOB Announces New Office of Enterprise Risk Management, Names Chief Risk Officer

    February 25, 2019 Published: PCAOB The Public Company Accounting Oversight Board announced it has created a new Office of Enterprise Risk Management to implement the Board’s strategic objective of implementing an Enterprise Risk Management (ERM) program for the organization. The Office of Enterprise Risk Management will be led by Sue Lee who has been named

  • IFAC and AAT Accounting Technician Framework identifies digital skills as essential

    February 25, 2019 Published: The Accountant By: Mishelle Thurai  Digital skills have been highlighted as one of the key skills and attitudes required for an accounting technician. The International Federation of Accountants (IFAC) have released a framework for professional accountancy organisations outlining the skills and attitudes for accounting technicians. Digital skills involves the accounting technician

  • European Federation of Accountants and Auditors (EFAA) event reveals limited support for Reporting of NFI by SMES

    February 22, 2019 Published: The Accountant At a roundtable held by the European Federation of Accountants and Auditors for SMEs (EFAA) the shared view was that making the reporting of non-financial information (NFI) by SMEs mandatory would not be effective in stimulating SMEs and driving their role for a sustainable economy. Three policy considerations were

  • COSO and Crowe offer guidance on internal controls for health providers

    February 20, 2019 Published: Accounting Today   The Committee of Sponsoring Organizations of the Treadway Commission, or COSO, is teaming up with Top 10 Firm Crowe LLP and CommonSpirit Health to issue new guidance for health care providers on internal controls amid heightened regulatory scrutiny of the health care sector. The publication, “2013 COSO Integrated

  • Three Imperatives for Taxing the Digital Economy

    February 15, 2019 Published: IFAC By: Kevin Dancey, Chief Executive Officer, IFAC The digital revolution is transforming economies, business models, and the lives of all citizens. It is dramatically impacting every aspect of economies, including the tax base and governments’ ability to raise revenues. And tax policy is at the top of the agenda in

  • FASB addresses deferred revenue in business combinations

    February 14, 2019 Published: Journal of Accountancy The recognition and measurement of deferred revenue in business combinations would change under a new proposal issued Thursday by FASB. FASB issued a proposed Accounting Standards Update (ASU) and an Invitation to Comment, and is seeking comments on both documents by April 30. The board is addressing diversity

  • European single electronic format (ESEF) Digitalising EU listed companies’ financial information

    February 18, 2019 Published: Accountancy Europe From 1 January 2020 on, EU law requires listed companies to report their financial statements in the European Single Electronic Format (ESEF). This harmonised format makes reports machine-readable. With ESEF, the European Commission aims to facilitate access, analysis and comparability of financial statements and make reporting easier. This eventually

  • EU and global securities regulators welcome agreement on data transfer

    February 15, 2019 Published: IOSCO The International Organization of Securities Commissions (IOSCO) and the European Securities and Markets Authority (ESMA) welcome theOpinion of the European Data Protection Board (EDPB) on their administrative arrangement for the transfer of personal data between European Economic Area (EEA) Financial Supervisory Authorities and non-EEA Financial Supervisory Authorities. Under the European General

  • IMA releases management accounting competency framework

    February 13, 2019 Published: The Accountant By: Mishelle Thurai The Institute of Management Accountants (IMA) has released its updated Management Accounting Competency Framework. The Framework identifies six domains of core knowledge, skills, and abilities that finance and accounting professionals, many of which have been included in the Certified Management Accountant (CMA) credential curriculum. Some of the

  • Global Consultation on Quality Management for Firms and Engagements Now Open

    February 08, 2019 Published: IFAC The International Auditing and Assurance Standards Board (IAASB) seeks public comment by July 1, 2019 on three interrelated standards that address quality management. The proposals bring important changes to the way professional accountancy firms are expected to manage quality—for audits, reviews, and other assurance and related services engagements. The proposed standards include a new

  • Finding value in revenue recognition implementation

    February 11, 2019 Published: Journal of Accountancy By: Ken Tysiac The challenges associated with FASB’s new revenue recognition standard have been substantial for many companies, but at least they’re gaining valuable data and process improvements as a result of the implementation. Getting the required data for the new financial disclosures under the standard was challenging

  • ACCA slams CMA´s audit reform proposals

    February 8, 2019 Published. The Accountant By: Joe Pickard The Association of Chartered Certified Accountants (ACCA) has criticised the UK’s Competition and Markets Authority’s (CMA) proposals for a reform of the statutory audit market. In its response to the study, the ACCA said: “While we support the CMA’s study of the statutory audit market, we

  • Voices How AI is transforming the jobs of accountants

    February 08 2019 Published: AccountingToday By: Aman Mann Artificial intelligence has become a buzz-phrase of sorts in recent years, and while it’s become hard to separate the hype from its practical potential, AI is rooted in a very realistic notion. Put simply, AI is one of the most advanced concepts in intelligent systems and decision-making

  • El reporte de información no financiera: nuevo paso en favor de la transparencia

    Enero 29, 2019 Publicado: elEconomista Por: Antoni Gómez El pasado 28 de diciembre, el Gobierno aprobó una modificación legal por la que se establece la obligatoriedad para una serie de empresas de publicar un estado de información no financiera relevante en relación a sus actividades. Esta ley responde a la aplicación en España de la

  • Consultation into improvements to the reporting of intangibles launched

    February 6, 2019 Published: Financial Reporting Council (FRC) Possible improvements to the reporting of factors that are important to a business’ generation of value are discussed in a consultation launched by the Financial Reporting Council (FRC) today. There are frequent calls to reform the accounting for intangible assets, partly in response to the move to a knowledge-based

  • Encouraging New Data on Accrual Adoption but Further Progress Needed

    February 4, 2019 Published: IFAC By: Steven Cain, Technical Manager, Policy and Technical Team, CIPFA In early November 2018 the Chartered Institute of Public Finance and Accountancy and IFAC launched a joint report on developments in the International Public Sector Financial Accountability Index, tracking progress in the adoption of accrual accounting by national and federal governments around the world.

  • Employee benefit plan auditing rules to change

    February 1, 2019 Published: Journal of Accountancy A new standard includes a revised report format for ERISA engagements. Reporting and performance requirements for practitioners auditing employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) will change under a new standard that the AICPA Auditing Standards Board (ASB) has voted to issue. Statement

  • Impacto del escenario político en actividad empresarial: fuerte caída en valoración positiva

    El Diario Financiero Un retroceso de 38 puntos en doce meses y de 25 puntos en el segundo semestre arrojó Encuesta de Expectativas Empresariales EYDiario Financiero. Un importante deterioro en la valoración del impacto del escenario político del país en la actividad del sector privado, constató la última edición de la Encuesta de Expectativas Empresariales

  • FASB alters transition requirements, scope of credit losses standard

    February 1, 2019 Published: Journal of Accountancy Implementation dates now will be aligned. FASB amended its standard on accounting for credit losses, changing the transition requirements and clarifying the scope of the standard. The credit losses standard was issued in 2016 and requires more timely reporting of credit losses on loans and other financial instruments. The

  • Feature: Materiality modernised

    January 28, 2019 Published: IFRS By Gary Kabureck, Member, International Accounting Standards Board ‘Financial statements need to communicate better’… was the essence of a pointed message the International Accounting Standards Board (Board) heard in early 2013. In response, our chair Hans Hoogervorst committed us to address, and resolve, what is colloquially referred to as ‘the disclosure

  • IES 7, Continuing Professional Development (Revised)

    January 28, 2019 Published: IFAC The revised International Education Standard (IES) 7, Continuing Professional Development, clarifies the principles and requirements for how professional accountancy organizations measure, monitor, and enforce their continuing professional development systems. It makes it clear that all professional accountants must develop and maintain professional competence to perform their role. The revised IES 7 places

  • Buildings Will Drive Transition to Circular Economy: New Methods of Valuation and Financing Are Key

    January 28, 2019 Published: IFAC By: Aglaia Fischer, Project Manager Circular Finance at Circle Economy & Sustainable Finance Lab, Lucas Geusebroek, Project Lead Circular Economy, Royal NBA A new report, Building Value, A Pathway to Circular Construction Finance, highlights the radical potential for valuing and financing circular buildings to accelerate the circular economy. The report includes tools

  • Voices: A realist’s predictions for the accounting profession in 2019

    January 23 2019 Published: AcountingToday By: Mike Whitmire I’m an accountant. Like most of you, I’m also a realist. I’m tired of “doom and gloom” predictions about the profession. I’m also sick of overly rosy and optimistic pictures of what’s to come for accountants and auditors — painted by non-accountants who have no idea what they’re

  • G20 Report highlights a high level of distrust in NGO Tax Systems

    January 24, 2019 Published; The Accountant The G20 Public Trust in Tax Report shows there is a high level of distrust among the public in politicians and non-government organisations in regards to tax systems. The report from the Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia and New Zealand (CA ANZ), and the International

  • Americans’ personal financial satisfaction dips in fourth quarter

    January 24, 2019 Published: Journal of Accountancy By Samiha Khanna  In the last quarter of 2018, the AICPA’s Personal Financial Satisfaction Index (PFSi) took a downward turn for the first time in two years. The PFSi dropped by 1.4 points (4.4%), largely due to a downturn in the stock market. However, the PFSi is still