• White House proposes folding PCAOB into SEC by 2022

    February 13, 2020 Published: AccountingToday The White House’s latest budget blueprint proposes consolidating the functions and responsibilities of the Public Company Accounting Oversight Board into the Securities and Exchange Commission starting in 2022. The move would save a projected $57 million that year, and up to $580 million by 2030, but the impact on audit firms and

  • IFAC highlights factors behind high-quality audits

    February 12, 2020 Published: AccountingToday The International Federation of Accountants has released a set of recommendations for achieving high-quality audits as regulators around the world push for more thorough audits to avoid accounting scandals. In a POV piece released Wednesday, IFAC identified five essential factors for performing high-quality audits: the right process, the right people, the right

  • Why the EU’s plan for a green economy needs non-financial reporting

    February 6, 2020 Published: Accountancy Europe By: Olivier Boutellis-Taft In the face of our social and environmental crisis, the European Commission calls on businesses to meet the UN’s Sustainable Development Goals (SDGs) and the Paris Climate Agreement. With its Non-Financial Reporting Directive (2014/95/EU), circular economy strategy, Sustainable Finance Action Plan, and European Green Deal, the EU has shown bold leadership. It should be encouraged to continue doing so, especially on a troubled

  • ARSC further converges SSARSs with international standards and aligns closer with GAAS

    February 11, 2020 Published: Journal of Accountancy By Jeff Drew The AICPA Accounting and Review Services Committee (ARSC) on Tuesday issued a new Statement on Standards for Accounting and Review Services (SSARS) that amends four sections of SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, to more closely align them

  • FASB proposes improvements to accounting for contributed nonfinancial assets by not-for-profit organizations

    February 10, 2020 Published: FASB The Financial Accounting Standards Board (FASB) today issued a proposed Accounting Standards Update (ASU) intended to improve transparency around how not-for-profit organizations present and disclose contributed nonfinancial assets, also known as gifts-in-kind. Examples of contributed nonfinancial assets include fixed assets such as land, buildings, and equipment; the use of fixed assets

  • Call for Feedback: Systemic Risk

    February 7, 2020 Published: SASB The Sustainability Accounting Standards Board (SASB) is seeking technical feedback from corporate risk professionals and credit risk analysts on key issues in the Asset Management & Custody Activities industry. During its Dec. 4, 2019 meeting, the Standards Board approved a standard-setting project to re-evaluate the Systemic Risk Management topic and

  • IESBA proposes guidance to address the objectivity of engagement quality reviewers

    January 30, 2020 Published: IESBA The International Ethics Standards Board for Accountants (IESBA) today released for public comment the Exposure Draft, Proposed Revision to the Code Addressing the Objectivity of Engagement Quality Reviewers. The proposed limited-scope revision to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) dovetails with the International Auditing and Assurance

  • New GASB standard addresses lease accounting, OPEB, other issues

    February 5, 2020 Published: Journal of Accountancy Issues for state and local governments related to lease accounting, other post-employment benefits (OPEB), and other topics were addressed Wednesday in an omnibus standard issued by GASB. The new standard, GASB Statement No. 92, Omnibus 2020, addresses various issues that include: Modifying the effective date of Statement No. 87, Leases, as

  • FRC plan for greater regulatory oversight

    February 5, 2020 Published: FRC The Financial Reporting Council (FRC) has today announced a major shakeup of its oversight and supervisory functions to speed up the pace of Enforcement investigations. The regulator is also broadening its stated purpose which is to serve the public interest by setting high standards of corporate governance and by holding to

  • IOSCO publishes annual work program

    January 30, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published its 2020 annual work program, to further its core objectives of protecting investors, maintaining fair, efficient and transparent markets and addressing systemic risks. The work program calls for IOSCO to continue its efforts on five specific priorities identified by

  • SEC proposes simplifying disclosure requirements

    January 31, 2020 Published: Journal of Accountancy The SEC voted to propose amendments designed to simplify and enhance certain company financial disclosures and issued guidance on key performance indicators and metrics in management’s discussion and analysis (MD&A). Item 301 (selected financial data) and Item 302 (supplementary financial data) would be eliminated from Regulation S-K under the proposal. Meanwhile, Item 303

  • Accountants can change the world

    February 23, 2010 Published: Accountancy Europe By: Alan Johnson, Deputy President of the International Federation of Accountants (IFAC) By 2050, there will be 9 billion people living on the planet and climate change will exacerbate all the challenges we face. As professional accountants, we must ensure we play our part in making economies sustainable. The profession

  • IASB mulls update to IFRS for SMEs

    January 28, 2020 Published: Accounting Today The International Accounting Standards Board is considering an update to IFRS for SMEs, its stripped down version of International Financial Reporting Standards for small and midsize entities, the second major update to the standards since it was introduced in 2009, to reflect the changes over the past decade in

  • Global Ethics Board proposes significant revisions to International Independence Standards

    Proposals Relating to Non-Assurance Services and Fees Further Reinforce Auditor Independence January 21, 2020 Published: IESBA The International Ethics Standards Board for Accountants® (IESBA®) today released two Exposure Drafts (EDs): ·         Proposed Revisions to the Non-Assurance Services Provisions of the Code ·         Proposed Revisions to the Fee-Related Provisions of the Code The EDs are aimed at strengthening the

  • Consultation on revised auditing standard for identifying and assessing risks of material misstatement

    January 28, 2020 Published: FRC The Financial Reporting Council (FRC) has today launched a consultation on the proposed revision of its UK standard (ISA (UK) 315 (Revised – June 2016) – Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment. The FRC’s changes reflect revisions made by the International Auditing and Assurance

  • Why audit firm leaders need to practice what they preach

    January 24, 2020 Published: Journal of Accountancy Firm leaders can improve audit quality by modeling the behavior they say they value, according to a new study performed with the backing of the AICPA Assurance Research Advisory Group. The researchers interviewed 24 firm leaders (mostly partners and managers) across 12 firms and surveyed 123 auditors on

  • IASB clarifies requirements for classifying liabilities as current or non-current

    January 23, 2020 Published: IFRS The International Accounting Standards Board (Board) has today issued narrow-scope amendments to IAS 1 Presentation of Financial Statements to clarify how to classify debt and other liabilities as current or non-current. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position,

  • AICPA drafts guidance for insurance standard

    January 21, 2020 Published: AccountingToday The American Institute of CPAs’ Financial Reporting Executive Committee has proposed several working drafts of its guidance on the long-duration insurance accounting standard for insurance companies. The Financial Accounting Standards Board has a new accounting standard on long-duration insurance contracts that makes targeted improvements to the existing recognition, measurement, presentation

  • How firms are delivering value with audit data analytics

    January 21, 2020 Published: Journal of Accountancy When Ed Wilkins, CPA, talks to audit committees about adding data analytics to the audit process, he explains to them that it usually takes three years for investment in a complex audit analytic to pay for itself. Audit analytics give practitioners the ability to examine an entire dataset

  • FASB clarifies the Interaction between the Accounting for Equity Securities, Equity Method Investments, and Certain Derivative Instruments

    January 16, 2020 Published: FASB The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that clarifies the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives.  The ASU is based on a consensus of the FASB’s Emerging Issues Task Force (EITF). In 2016, the FASB issued Accounting Standards Update

  • Investors call for improved workforce reporting

    January 20, 2020 Published: Financial Reporting Council Reporting on workforce-related issues needs to improve to meet investor needs and reflect modern-day workforces according to a new report from the Financial Reporting Council’s (FRC) Financial Reporting Lab (the Lab). Workforce-related matters such as working conditions, changing contractual arrangements and automation have all become areas of increasing investor focus

  • Call for improved UN Sustainable Development Goals disclosures

    January 17, 2020 Published: Integrated Reporting (IR) We have joined leading accounting bodies calling for corporate and asset owner action and improved reporting on the UN’s Sustainable Development Goals (SDG) in an attempt to hit goals set for 2030.  The recommendations are detailed in the report published today, Sustainable Development Goals Disclosure (SDGD) Recommendations, authored by

  • Tackling Fraud and Financial Crime in the Global Public Sector through Training and Education

    January 6, 2020 Published: IFAC By: Les Dobie, Head of Counter Fraud Training, CIPFA Fraud and financial crime will always exist. Where there’s money, there are also people working to exploit the financial system for their personal gain – and the public sector is no exception. Although there is still work to be done, western governments

  • Fraud and Emerging Tech: Robotic Process Automation

    January 12, 2020 Published:  Financial Executives International (FEI) by Morgan Hunsaker and Dillon Papenfuss Companies are rapidly progressing with RPA adoption to increase efficiency and automate low-value, repetitive tasks. Companies hoping to maximize their investment should consider RPA’s impact on fraud risk and the control environment, too. This paper is first in a series from the

  • Blockchain makes advances, but audit firms remain wary

    January 9, 2020 Published: AccountingToday Accounting firms are beginning to wade into the use of blockchain technology for audits, but with caution as the technology spreads beyond the cryptocurrency space where it’s been used for digital assets like Bitcoin. “I don’t know that blockchain is going to necessarily make things easier for auditors,” said Amy

  • The Chartered IIA launch New Internal Audit Code

    January 9, 2020 Published: The Accountant The Chartered Institute of Internal Auditors (Chartered IIA) has published a new code with the goal of increasing the effectiveness of internal audit functions. The Internal Audit Code of Practice aims to strengthen corporate governance following a number of high-profile company collapses which have been linked to governance deficiencies,

  • Voices: Changes to PCAOB quality control standards could lead to more exposure for audit firms

    January 09, 2020 Published: AccountingToday By: Jessica Pulliam and Charles Strecker Partner, Baker Botts LLP The Public Accounting Oversight Board issued a concept release last month proposing a significant overhaul to the quality control rules. The proposed changes could have the potential for expanding future enforcement proceedings, which have historically focused on a firm’s quality control efforts in narrow

  • Improved governance and reporting required to promote sustainability and trust in business

    January 9, 2020 Published: FRC Companies need to improve their governance practices and reporting if they are to demonstrate their positive impact on the economy and wider society, according to a new report from the Financial Reporting Council (FRC). While changes to the 2018 UK Corporate Governance Code raised the bar considerably and have led to some high-quality

  • SEC Office of Compliance Inspections and Examinations Announces 2020 Examination Priorities

    January 7, 2020 Published: SEC The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (OCIE) today announced its 2020 examination priorities. OCIE publishes its examination priorities annually to enhance the transparency of its examination program and to provide insights into its risk-based approach, including the areas it believes present potential risks to investors and

  • Accounting for cloud computing: What you need to know

    January 6, 2020 Published: Journal of Accountancy By Ellen Goldstein Many companies and accounting firms have been focusing on new standards on revenue recognition and accounting for leases, hedging, and credit losses. But another new FASB standard — on cloud computing costs associated with a service arrangement — became effective for public business entities in

  • What doesn’t kill auditors makes them stronger

    January 3, 2020 Published: Accounting Today It’s no secret that technology is poised to bring tremendous change to auditing; the question is, will those changes be positive or negative? To assess the state of the field, Accounting Today convened a virtual roundtable of experts and practitioners to share their thoughts on where things stand — and where

  • IESBA revises Part 4B of the International Code of Ethics

    Changes Align Part 4B to Assurance Terms and Concepts Used in ISAE 3000 (Revised) January03, 2020 Published: IESBA The International Ethics Standards Board for Accountants (IESBA) today released Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). Part 4B of the International Code of Ethics for Professional Accountants (including International Independence

  • Final Reflections on Internal Audit’s Decade of Progress

    December 30, 2019 Published: The Institute of Internal Auditors In the past 10 years, many significant events have occurred that have dramatically altered the risk landscape that internal auditors must navigate. From strict new post-financial crisis regulations, to an explosion of cyberattacks, to the emergence of risks related to artificial intelligence, data ethics, and privacy,

  • SEC Proposes to Codify Certain Consultations and Modernize Auditor Independence Rules

    December 30, 2019 Published: SEC The Securities and Exchange Commission today announced that it is proposing amendments to codify certain staff consultations and modernize certain aspects of its auditor independence framework.  The proposed amendments would update select aspects of the nearly two-decade-old auditor independence rule set to more effectively structure the independence rules and analysis

  • Fighting Corruption Requires Accountants to Act: Here´s How

    December 9, 2019 Published: IFAC Corruption is taking a toll. The United Nations puts its annual cost at $3.6 trillion—about five percent of global GDP. That’s almost twice the GDP of Brazil. The consequences for economic growth and for the welfare of ordinary people are severe – and no country is immune. This is a global

  • IAASB revises standard for risk of material misstatement

    December 26, 2019 Published: AccountingToday The International Accounting and Assurance Standards Board has released a revised standard for identifying and assessing the risks of material misstatements. International Standard on Auditing (ISA) 315 (Revised 2019) is part of the IAASB’s work to improve audit quality globally. In finalizing the revisions, the IAASB concentrated on making the standard

  • IOSCO consults on measures to reduce conflict of interests in debt capital raising

    December 16, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on proposed guidance to help IOSCO members address potential conflicts of interest and associated conduct risks arising from the role of market intermediaries in the debt capital raising process. Conflicts of interest and associated conduct risks can

  • “Podríamos hablar de una crisis del modelo de democracia representativa”

    JAIME VARGAS, SOCIO LÍDER DE IMPUESTOS INTERNACIONALES DE EY COLOMBIA: El Diario Financiero El experto analizó las causas de las protestas de 2019 en América Latina y la respuesta de Colombia a la crisis, a través de la aprobación de la reforma tributaria.América Latina se dispone a cerrar un año convulsivo en materia social y

  • IASB proposes to require comparable profit subtotals and bring greater transparency to ‘non-GAAP’ measures

    December 17, 2019 Published: IFRS The International Accounting Standards Board (Board) has proposed improvements to the way information is communicated in the financial statements, with a focus on financial performance. Responding to investor demand, the proposals would require more comparable information in the statement of profit or loss and a more disciplined and transparent approach

  • New Tone at the Top Explores How to Measure Effective Governance and More

    December 13, 2019 Published: The Institute of Internal Auditors There is a significant disconnect between assessments of governance and true governance effectiveness. It’s time to assess why governance evaluations are often wrong and to what can be done to fix the problem. However, most companies still don’t measure their overall system of corporate governance because

  • FRC updates aid to Audit Committees in evaluating audit quality

    December 19, 2019 Published: Financial Reporting Council (FRC) The Financial Reporting Council (FRC) has issued an update of its Practice Aid to assist audit committees in evaluating audit quality in their assessment of the effectiveness of the external audit process. The update takes account of developments since the first edition was issued in 2015, including revisions of

  • FRC moves to strengthen auditor Independence and ban conflicts of interest

    December 17, 2019 Published: FRC – Changes deliver stronger UK ethical requirements the FRC committed to implement – Tougher ethical standards strengthening auditor independence, and preventing conflicts of interest – New standard bans auditors from providing recruitment and remuneration services To support the delivery of high-quality audit in the UK, the FRC has today issued a major

  • PCAOB Issues Quality Control Concept Release

    December 17, 2019 Published: PCAOB The Public Company Accounting Oversight Board today voted to issue a concept release on a potential approach to revising the PCAOB’s quality control standards. The release solicits public comment to inform the Board on the approach and what changes it might propose in the future to strengthen the PCAOB’s requirements for audit firms’ quality

  • How to handle accounting for digital assets

    December 16, 2019 Published: Journal of Accountancy In a business environment that’s changing rapidly, even the currency used to pay for transactions is evolving in ways that challenge accountants and auditors. The growing popularity of various forms of digital (or crypto) assets has required many CPAs to consider how to appropriately account for them under

  • IOSCO launches framework for monitoring leverage in funds that may pose stability risks

    December 13, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today unveiled a twostep framework designed to facilitate monitoring of leverage in investment funds that could potentially pose risks to financial stability. The framework, outlined in the report on Recommendations for a Framework Assessing Leverage in Investment Funds, comprises a two-step

  • How auditors can stay independent while advising on revenue recognition

    December 13, 2019 Published: Journal of Accountancy One of the most difficult challenges for some auditors as 2019 comes to an end is maintaining their independence amid the frustration and confusion of their clients over the implementation of FASB’s new revenue recognition standard. CPAs who see their clients struggling want to help, but if they

  • PCAOB’s 2020 inspection focus and audit quality tips revealed

    December 11, 2019 Published: Journal of Accountancy The PCAOB’s inspections of audit firms in 2020 will continue to focus on areas that have been challenging for firms in recent years, George Botic, CPA, the PCAOB’s director of Registration and Inspections, said Wednesday. During a presentation at the AICPA Conference on Current SEC and PCAOB Developments

  • PCAOB Posts Critical Audit Matters Spotlight

    December 10, 2019 Published: PCAOB The PCAOB today posted to its website a Critical Audit Matters (CAMs) Spotlight. Consistent with the Board’s strategic goal of providing more useful and timely information, we believe that sharing our initial observations from the experiences of the first adopters of CAM requirements could help auditors, companies, audit committees, and other

  • ASB proposes conforming amendments, addresses practice issues

    December 10, 2019 Published: Journal of Accountancy The AICPA Auditing Standards Board (ASB) proposed amendments Tuesday that would conform sections of its codification to its recently issued standards on auditor reporting and the auditor’s responsibilities relating to other information included in annual reports. In the exposure draft, the ASB also proposed amending certain AU-C sections to address

  • New standard adds flexibility for agreed-upon procedures

    December 5, 2019 Published: Journal of Accountancy CPA practitioners will have more flexibility to perform agreed-upon procedures engagements under a new standard issued Thursday by the AICPA Auditing Standards Board. Statement on Standards for Attestation Engagements (SSAE) No. 19, Agreed-Upon Procedures Engagements, provides flexibility to CPAs by: – Removing the requirement that the practitioner request an assertion from