• Corona crisis: lessons for a more sustainable future

    May 26, 2020 Published: Accountancy Europe The COVID-19 crisis has shocked us all. While the outbreak’s origins are still being discussed, the health emergency and the resulting global economic crisis show that countries have to be better prepared. This new crisis does not happen in isolation; it emphasises the ongoing ones, such as on climate, inequality, and demographics.

  • Small businesses urged to stress test their finances

    May 22, 2020 Published: International Accounting Bulletin As ONS data reveals just under a quarter of all businesses are unsure about their cash position, Purbeck Insurance Services is urging small businesses impacted by COVID-19, to stress test their finances.   Purbeck has also launched a free online guide to the support packages and measures SMEs can consider

  • Fostering a culture of openness around mental Health?

    May 22, 2020 Published: International Accounting Bulletin Author: Zoya Malik  For Mental Health Awareness Week, Naomi Thompson, Head of Organisational Development at Benenden Health, provides insight into how employers can create a culture of openness around mental health. As the COVID-19 crisis puts a strain on the nation’s mental health, employers must ensure they have

  • SEC Adopts Amendments to Improve Financial Disclosures about Acquisitions and Dispositions of Businesses

    May 21, 2020 Published: SEC The Securities and Exchange Commission today announced that it has voted to adopt amendments to its rules and forms to improve for investors the financial information about acquired or disposed businesses, facilitate more timely access to capital, and reduce the complexity and costs to prepare the disclosure. The amendments will update

  • Tips for audit committees during the pandemic

    May 18, 2020 Published: Journal of Accountancy Audit committees have a critical role to play for companies in a business environment that has been severely disrupted by the coronavirus pandemic. In addition to their fiduciary responsibilities for overseeing the external auditor and financial statements, audit committees can contribute valuable oversight duties in areas such as

  • 90% of Anti-Fraud Professionals Have Seen an Increase in Consumer Scams Due to COVID-19

    April 26, 2020 Published: ACFE In a new survey conducted by the Association of Certified Fraud Examiners (ACFE) about the effect COVID-19 has on fraud, 90% of respondents reported that they have seen an increase in scams targeting consumers, with 51% believing the increase has been by a significant amount. Respondents reported seeing an immediate

  • Voices: Coronavirus’s impact on Q1 reporting and financial closing

    May 13, 2020 Published: Accounting Today By Clancy Fossum, CEO, Embark The sky might not literally be falling, but it sure feels like it is. As the world grapples with the escalating impact of the coronavirus pandemic, a stark realization is now sweeping over accounting and finance teams — they’re the ones who have to figure out

  • Look Out for Coronavirus-Related Investment Scams – Investor Alert

    Feb. 4, 2020 Updated May 6, 2020 Published: SEC The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about investment frauds involving claims that a company’s products or services will be used to help stop the coronavirus outbreak. Fraudsters often use the latest news developments to lure investors

  • Accountancy Europe supports new EU action against money laundering

    May 8, 2020 Published: Accountancy Europe Accountancy Europe supports increased action against money laundering in a smart and collaborative way. We encourage the European Commission’s Anti-Money Laundering (AML) Action Plan issued on 7 May 2020 as the first step towards legislative proposals expected in early-2021. We will contribute our feedback to the public consultation. With the ongoing coronavirus

  • Guidance for companies on Corporate Governance and Reporting (Including Interim Reports)

    May 12, 2020 Published: FRC Many companies are facing unprecedented uncertainty about their immediate prospects in an environment which may challenge or disrupt their usual management and governance processes. This uncertainty is likely to decrease over time as more information becomes available about COVID-19, the length and extent of social distancing restrictions in different countries,

  • Effective dates extended for 3 AICPA ethics interpretations

    May 6, 2020 Published: Journal of Accountancy The effective dates of three AICPA ethics interpretations will be extended by one year because of the coronavirus pandemic after a vote Tuesday by the AICPA Professional Ethics Executive Committee (PEEC). Firms have told the AICPA that regardless of when the pandemic is declared over or social-distancing restrictions

  • Commission steps up fight against money laundering and terrorist financing

    May 7, 2020 Published: European Commission The European Commission has today put forward a comprehensive approach to further strengthen the EU’s fight against money laundering and terrorist financing. The Commission has published an ambitious and multifaceted Action Plan, which sets out concrete measures that the Commission will take over the next 12 months to better

  • IFAC offers plan for transforming practices amid coronavirus

    May 4, 2020 Published: Accounting Today The International Federation of Accountants has published a roadmap for transforming small and medium-sized accounting practices in the midst of the novel coronavirus pandemic and moving them into the future. IFAC’s ‘‘Practice Transformation Action Plan – A Roadmap to the Future’’ focuses on four main areas for firms: embrace

  • SEC Provides Temporary, Conditional Relief to Allow Small Businesses to Pursue Expedited Crowdfunding Offerings

    May 4, 2020 Published: SEC The Securities and Exchange Commission today announced that it is providing temporary, conditional relief for established smaller companies affected by COVID-19 that may look to meet their urgent funding needs through a Regulation Crowdfunding offering. Today’s actions, which follow suggestions made by members of the SEC’s Small Business Capital Formation Advisory

  • COVID-19 and going concern: increased risk of material uncertainties

    May 1, 2020 Published: ICAEW In these unprecedented times, the audit of going concern assessments and reporting on material uncertainty related to going concerns are key for auditors. The Audit and Assurance Faculty has produced two guides on the topic. The first guide covers the assessment of going concern and the second the reporting of

  • Coronavirus’ impact on auditing for 2019 year-ends and beyond Analysis of guidance for European auditors

    April 30, 2020 Published: Accountancy Europe Measures taken to contain the coronavirus affect us all. This publication focuses on how this impacts businesses and the people that audit them. It aims to support European auditors in adapting their work to new circumstances in ongoing audits with 2019 year-ends and beyond. To this end we have

  • FASB Issues Staff Q&A Document on Hedge Accounting during COVID-19 Pandemic

    April 28, 2020 Published: FASB The Financial Accounting Standards Board (FASB) staff today issued a question-and-answer document (Q&A) that responds to frequently asked questions about the disruptive effects of COVID-19 on cash flow hedge accounting. FASB Accounting Standards Codification® Topic 815, Derivatives and Hedging, provides guidance on when to discontinue cash flow hedge accounting and when and how

  • IAASB proposes modernization of Group Audits Standards in support of Audit Quality

    April 27, 2020 Published: IAASB The International Auditing and Assurance Standards Board (IAASB) today released the exposure draft of proposed International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)s. Proposed ISA 600 (Revised) deals with special considerations for audits of group financial statements (group audits). Group audits

  • Fraud Report Affirms Internal Audit’s Value at Critical Time

    April 27, 2020 Published: Internal Auditor By: Richard Chambers, president and CEO of The IIA Each year, the Association of Certified Fraud Examiners (ACFE) publishes a “Report to the Nations,” which shares results of its annual Global Fraud Survey. The findings reflect the significant role that internal audit plays, and the value it adds, in

  • NON-Authoritative support material: Audit documentation when using automated tools and techniques

    April 23, 2020 Published: IAASB The Technology Working Group (TWG) of the International Auditing and Assurance Standards Board (IAASB) published non-authoritative support material related to the auditor’s documentation when using automated tools and techniques (ATT), such as data analytics, robotics automation processes or artificial intelligence applications.  The publication assists auditors in understanding how the use

  • FASB proposes effective date delays on time-sensitive standards

    April 22, 2020 Published: The Accountant The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) that would grant a one-year effective date delay for certain stakeholders applying leases and revenue recognition. The leases effective date deferral would be limited to private companies, private not-for-profit organisations, and public not-for-profit organisations that

  • Modified Audit Opinions during Covid-19 crisis

    21 April 2020 Published: FRC FRC publishes further guidance on modified auditors’ opinions and reports during Covid 19 crisis. Modifications of Independent Auditor’s Opinions and Reports Two key objectives of any auditor are to obtain sufficient, appropriate audit evidence to support their audit opinion, and to then report their opinion on the financial statements based

  • ASB delays effective dates of SASs No. 134–140

    April 20, 2020 Published: Journal of Accountancy The effective dates of seven private company auditing standards were delayed for one year as the result of a vote Monday by the AICPA Auditing Standards Board (ASB). Delaying the effective dates of Statements on Auditing Standards (SASs) No. 134–140 provides relief to audit firms amid the challenges

  • PCAOB Posts Request for Comment, Seeks Stakeholder Input on Critical Audit Matters

    April 17, 2020 Published: PCAOB The PCAOB today posted to its website a Request for Comment from the Office of Economic and Risk Analysis, which seeks input from audit firms, preparers, audit committees, investors, and other financial statement users to inform our interim analysis of the Critical Audit Matter (CAM) requirements. We are committed to

  • IAASB´s New Strategy and Work Plan focuses on increased agility, enhanced coordination, and a priority on responding to emerging challenges

    April 15, 2020 Published: IAASB Today, the International Auditing and Assurance Standards Board (IAASB) published its Strategy for 2020‒2023 (the Strategy) and Work Plan for 2020‒2021 (the Work Plan). The strategy, developed through extensive external consultation over two years, looks to build sustained trust in financial and other reporting through high-quality audits, assurance, and related services

  • Tips for auditing with changed controls during the pandemic

    April 13, 2020 Published: Journal of Accountancy By Bob Dohrer, CPA, CGMA, with Ken Tysiac The coronavirus pandemic has raised a number of questions about how to properly audit financial statements when internal controls have changed due to dramatic changes in an entity’s business volume and activities. The auditing standards (GAAS) require the auditor to

  • 10-Q Considerations during COVID-19

    April 13, 2020 Published: The CAQ The COVID-19 pandemic and the related market conditions create many new uncertainties for public companies, auditors, and audit committees. As SEC Chair Jay Clayton recently recognized, the continuing operation of the US capital markets is an essential component of the US’s response to, and recovery from, COVID-19. This resource

  • Application of IFRS 16 in the light of the covid-19 uncertainty

    April 10, 2020 Published: IFRS A document responding to questions regarding the application of IFRS 16 Leases to rent concessions granted as a result of the covid-19 pandemic has been published. Access IFRS 16 and covid-19. The document is prepared for educational purposes, highlighting requirements within IFRS 16 and other IFRS Standards that are relevant for companies considering

  • FASB Issues Staff Q&A Document on Accounting for Leases during COVID-19 Pandemic

    April 10, 2020 Published: FASB The Financial Accounting Standards Board (FASB) staff today issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. Many lessors are, or will be, providing lease concessions to tenants impacted by the economic disruptions caused

  • COVID-19 Bulletin March 2020

    BULLETIN: GUIDANCE FOR AUDITORS AND MATTERS TO CONSIDER WHERE ENGAGEMENTS ARE AFFECTED BY CORONAVIRUS (COVID-19) (Now updated to include Gathering Evidence through Remote Means –  9th April 2020 ) April 9, 2020 Published: FRC This Bulletin is intended to provide guidance to auditors, carrying out audit engagements that may be affected by Covid-19. It is driven by

  • Global Economic Conditions Survey: Economic Confidence Collapses to Record Low

    April 7, 2020 Published: The Accountant Economic confidence in Q1 has collapsed to a record low, according to a report published by the Association of Chartered Certified Accountants (ACCA) and Institute of Management Accountants (IMA). The report, Global Economic Conditions Survey (GECS), which has been published annually since 2009, showed that global confidence fell to its lowest

  • ASB to consider one-year deferral of effective dates

    April 6, 2020 Published: Journal of Accountancy The effective dates for seven recently issued generally accepted auditing standards may be deferred by one year when the AICPA Auditing Standards Board (ASB) holds a special open meeting from 2 to 4 p.m. on April 20 to discuss relief due to the coronavirus pandemic. At the meeting,

  • CIMA calls on UK Government to provide further support to SMES

    April 2, 2020 Published: The Accountant The Chartered Institute of Management Accountants (CIMA) has called on the UK Government to provide more support for UK SMEs as they continue to face the challenges presented by the Covid-19 pandemic. CIMA wrote to UK Chancellor Rishi Sunak suggesting the adoption and implementation of six additional measures to

  • PCAOB Staff Provides Reminders for Audits Nearing Completion in Light of COVID-19

    April 2, 2020 Published: PCAOB The Public Company Accounting Oversight Board (PCAOB) today released a staff Spotlight document, COVID-19: Reminders for Audits Nearing Completion, to provide important reminders to auditors of issuers and broker-dealers for audits nearing completion. “The COVID-19 crisis is having a significant impact on investors, issuers, and auditors alike,” said Chairman William D. Duhnke

  • Addressing pandemic-related audit challenges

    April 1, 2020 Published: Journal of Accountancy The coronavirus pandemic has brought about challenges for auditors the likes of which many of them have never seen. Practitioners are working at home in unprecedented numbers as offices close and government leaders issue shelter-at-home orders. Desperate clients are trying to keep their businesses solvent, pay their employees,

  • Enterprise risk management: More critical than ever

    April 1, 2020 Published: Journal of Accountancy By Neil Amato The fast-moving, global reach of the coronavirus has illustrated that a forward-looking approach to risk management is more important than ever. While no one could have predicted the nature, severity, or timing of the virus, it’s clear that organizations should include such risk scenarios in

  • Global Knowledge Brief, Data Ethics – Where does internal audit fit?

    March 30, 2020 Published: The Institute of Internal Auditors Learn why all parties must expand their knowledge as the regulatory environment around data ethics evolves The Institute of Internal Auditors released a new Global Knowledge Brief, “Data Ethics – Where does internal audit fit?” This brief explores organizational conduct and the potential associated reputational and

  • COVID-19: 5 key steps for accountants to guide SMEs through the crisis

    March 27, 2020 Published: Accountancy Europe Accountants – many of whom are small practitioners themselves – are SMEs’ trusted advisors. The corona crisis is a critical time where SMEs need all the guidance they can get to navigate through the storm. We call on SME accountants and small accountancy practices to help struggling SMEs through

  • Application of IFRS 9 in the light of the coronavirus uncertainty

    March 27, 2020 Published: IFRS A document responding to questions regarding the application of IFRS 9 Financial Instruments during this period of enhanced economic uncertainty arising from the covid-19 pandemic has been published today. Access IFRS 9 and covid-19—accounting for expected credit losses. The document is prepared for educational purposes, highlighting requirements within the Standard that are relevant

  • Technological Resources: Using technology to enhance audit quality

    March 25, 2020 Published: FRC The Financial Reporting Council (FRC) has today issued a discussion paper on Technological Resources: Using technology to enhance audit quality. Building on the FRC’s recent thematic review, The use of technology in the audit of financial statements, the FRC is seeking further insight into the use of technology and its potential impact on

  • ESMA Issues Guidance on Accounting Implications of COVID-19

    March 25, 2020 Published: European Securities and Markets Authority (ESMA) The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has issued a Public Statement on some accounting implications of the economic support and relief measures adopted by EU Member States in response to the COVID-19 outbreak.   The measures include moratoria on repayment of loans

  • Coronavirus and financial reporting: Report addresses key issues

    March 20, 2020 Published: Journal of Accountancy By Ken Tysiac As the coronavirus outbreak puts pressure on health care systems and wreaks havoc on businesses throughout the world, the duty of financial statement preparers and CPA practitioners remains the same. Regardless of the changing environment, preparers need to make sure the information their organizations present

  • Regulators clear way for certain loan modifications amid pandemic

    March 22, 2020 Published: Journal of Accountancy By Kim Nilsen Borrowers concerned about meeting loan obligations amid the disruption caused by the coronavirus pandemic got some relief Sunday from a host of regulators who pledged jointly to clear the way for critical loan modifications. A statement issued by several federal and state banking regulators spelled

  • IAASB consults on Extended External Reporting (EER) Assurance

    March 13, 2020 Published: IAASB Organizations are increasingly reporting about their broader performance or impact (“Extended External Reporting” or “EER”) either voluntarily or as required by law or regulation, and there is a growing demand for assurance engagements on such reporting. In response, the International Auditing and Assurance Standards Board (IAASB) has developed for feedback

  • IASB decides on new effective date for IFRS 17 of 1 January 2023

    March 17, 2020 Published: IFRS The International Accounting Standards Board (Board) has completed its discussions on the amendments to IFRS 17 Insurance Contracts that were proposed for public consultation in June 2019. It has today decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1

  • How the coronavirus may affect financial reporting and auditing

    March 17, 2020 Published: Journal of Accountancy By Joseph Radigan The coronavirus pandemic has the potential to create significant changes for CPAs who prepare company financial statements — and for auditors as well. In the face of disruptions to global supply chains and other business activity, the SEC and the PCAOB in mid-February issued limited

  • AICPA proposes guidance on insurance accounting

    March 16, 2020 Published: Accounting Today The American Institute of CPAs’s Financial Reporting Committee released working drafts Monday of two pieces of implementation guidance for the Financial Accounting Standards Board’s long-duration insurance contracts standard. The AICPA’s FinREC group has been developing guidance to help companies in various industries deal with some of FASB’s new standards

  • FRC guidance for auditors arising from the coronavirus pandemic

    March 16, 2020 Published: FRC The Financial Reporting Council (FRC) has today issued updated guidance for auditors which may be facing practical difficulties in carrying out audits as a result of the COVID-19 pandemic (coronavirus). Uncertainty about the immediate outlook for many companies has increased sharply. This has consequences for companies proposing to report results in the coming

  • SEC Takes Targeted Action to Assist Funds and Advisers, Permits Virtual Board Meetings and Provides Conditional Relief from Certain Filing Procedures

    March 13, 2020 Published: SEC SEC Is Closely Monitoring the Impact of the Coronavirus on Investors, Funds, and Advisers The Securities and Exchange Commission today announced regulatory relief for funds and investment advisers whose operations may be affected by the coronavirus.  The relief provided today covers in-person board meetings and certain filing and delivery requirements for certain investment funds and investment advisers.  The impacts

  • SEC exempts certain companies from ICFR attestation requirement

    March 12, 2020 Published: Journal of Accountancy Smaller reporting companies with less than $100 million in revenue will no longer be required to obtain a separate attestation of their internal control over financial reporting (ICFR) from an outside auditor under amendments adopted Thursday by the SEC. Under the amendments, these companies will continue to be required to