• 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

  • Call to action in response to climate change

    March 6, 2020 Published: Accountancy Europe Accountancy Europe has been calling for the shift to a sustainable economy for many years. Our work in this area includes, contributing to the sustainable finance agenda, exploring green taxes, ending greenwashing with better non-financial reporting and shifting to sustainable corporate governance. We are pleased to join our voice

  • AU-C 800 series amended to conform with auditor reporting standard

    March 10, 2020 Published: Journal of Accountancy A new standard issued Tuesday by the AICPA Auditing Standards Board (ASB) is designed to align the AU-C 800 series in AICPA Professional Standards with the new standard on auditor reporting. Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, was

  • Revisiting the Question “Should a CFO be an Accountant?”

    March 9, 2020 Published: IFAC By: Stathis Gould, Deputy Director, Professional Accountants in Business, IFAC The Chief Financial Officer (CFO) is an important role – and one that continues to expand and transform. As growing uncertainty and risk permeate every organization, and businesses begin to think about value beyond a shareholders’ perspective, the CFO role is an increasingly

  • Global Ethics Board releases report exploring the ethical implications of technology for accountants

    February 27, 2020 Published: IESBA The International Ethics Standards Board for Accountants (IESBA) today released its Phase One Report exploring the ethical implications of technology on the accounting, assurance, and finance functions. The report is the culmination of the first phase of fact-finding work the global ethics standard-setting board initiated in recognition of the pace and

  • SEC Provides Conditional Regulatory Relief and Assistance for Companies Affected by the Coronavirus Disease 2019 (COVID-19)

    SEC is closely monitoring the impact of the coronavirus on investors and capital markets March 4, 2020 Published: SEC Today, the Securities and Exchange Commission announced that it is providing conditional regulatory relief for certain publicly traded company filing obligations under the federal securities laws. The impacts of the coronavirus may present challenges for certain companies

  • From risks to regulation: rethinking company categorisation

    March 2, 2020 Published: Accountancy Europe Quantitative criteria currently define how companies are categorised for regulatory purposes. Their turnover or number of employees often determine what legislation applies to them. With global megatrends disrupting business models and markets, this publication aims to open the debate on how entities should be categorised. It does so by

  • ACCA eyes global economic impact of coronavirus

    March 2, 2020 Published: Accounting Today The Association of Chartered Certified Accountants has released a paper examining the impact of the coronavirus, and how it is affecting economies around the world, including the U.S. In the policy brief released Monday, the ACCA noted that economic shocks such as the coronavirus, also known as COVID-19, tend to have

  • FRC calls for operational separation

    March 2, 2020 Published: International Accounting Bulletin The Financial Reporting Council (FRC) has written to the UK’s largest audit firms setting out the regulator’s expectations for operational separation to bring about audit quality improvements and audit market resilience. Everyone, not just in the UK but globally is affected in some way by the quality of

  • International Framework recommended as a key framework in call to action by A4S and Accounting Bodies internationally to tackle climate change

    February 26, 2020 Published: <IR> The International Integrated Reporting Council’s <IR> Framework has today, 26 February 2020, been recommended as a key framework for accountants globally to use as they respond to and account for climate change risks. The recommendation has come as part of a call to action signed by 14 accounting bodies and led by the

  • The Framework revision: Inspiring better reporting

    February 26, 2020 Published: <IR> The first ever revision of the International <IR> Framework is now underway. Since the <IR> Framework’s release in December 2013, the IIRC has focused on driving its widespread international adoption. Today, there is a strong and increasing momentum for integrated reporting and integrated thinking to become the norm within mainstream business practice. A March

  • Preparing for Changes to ISA 540 on Auditing Accounting Estimates

    February 24, 2020 Published: IFAC By: Louise Sharp  Auditing accounting estimates has never been easy. Estimates are difficult to measure, often involve management’s judgment and can be based on highly complex models. So, by their very nature, they pose huge challenges for auditors. Not only are they difficult to audit, but their importance to investors

  • New Tone at the Top Explores the Current State of Data Governance and More…

    February 13, 2020 Published: The Institute of Internal Auditors With more than 2.5 quintillion bites of data being produced globally every day, it is not hyperbole to say that data governance is the biggest change facing governance today. It is an issue that expands daily and how organizations choose to approach it will allow them

  • GASB proposes criteria for financial statement disclosures

    February 21, 2020 Published: Journal of Accountancy A proposed concepts statement issued Friday by GASB would establish new criteria for state and local governments to follow in developing their disclosures for notes to financial statements. The exposure draft, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements, describes the

  • FRC assesses company and auditor responses to climate change

    20 February 2020 Published: FRC The Financial Reporting Council (FRC) has announced a major review of how companies and auditors assess and report on the impact of climate change. The FRC will review the extent to which UK companies and auditors are responding to the impact of climate change on their business to ensure reporting

  • CDSB and CDP release handbook to meet challenges of environmental and climate reporting across the EU

    February 19, 2020 Published: CDSB The EU Environmental Reporting Handbook evaluates company disclosure in line with the Non-Financial Reporting Directive With the EU Green Deal aiming to increase environmental and climate disclosure, the Climate Disclosure Standards Board (CDSB) and CDP have today released an environmental reporting handbook to help companies improve their disclosure in line with the Non-Financial

  • FRC advice to companies and auditors on coronavirus risk disclosures

    February 18, 2020 Published: FRC The Financial Reporting Council (FRC) has today published guidance for companies on disclosure of risks and other reporting consequences arising from the emergence and spread of Coronavirus (COVID-19). The regulator is also discussing with audit firms whether the virus affects their ability to review component audits in China and the consequences to

  • IOSCO publishes key considerations for regulating crypto-asset trading platforms

    February 12, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions today published a report that describes the issues and risks associated with crypto-asset trading platforms (CTPs) and sets out key considerations to assist regulatory authorities in addressing these issues. The development of crypto-assets is an important area of interest for regulatory authorities around

  • 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