• 5 Key Factors to Enhance Audit Committee Effectiveness

    September 9, 2019 Published: IFAC By:  Laura Leka , Technical Manager, Global Accountancy Profession Support, IFAC and Laurie Tugman, IFAC PAIB Committee Member Corporate failures and scandals across countries, including the recent collapses of Carillion, Patisserie Valerie and London Capital & Finance in the UK, failings in South Africa’s state-owned entities Transnet, Eskom, and South African Airways, and

  • More efforts needed to boost trust in business and finance

    September 9, 2019 Published: OECD Policy makers should step up their efforts to bolster public trust in finance to reduce the risks of contagion if economic growth and financial returns continue to fall, according to a new OECD report. The 2008 global financial crisis marked a turning point in the way governments considered the role

  • AICPA issues auditor practice aid on CECL standard

    September 9, 2019 Published: Accounting Today The American Institute of CPAs has released a practice aid to help auditors with the allowance for credit losses under the Financial Accounting Standards Board’s new standard for measuring credit losses on financial statements. The practice aid, Allowance for Credit Losses — Audit Considerations, focuses on loans measured at amortized

  • FASB proposes guidance to ease transition to new benchmark rates

    September 5, 2019 Published: Journal of Accountancy FASB is seeking feedback on a proposed Accounting Standards Update (ASU) designed to reduce the accounting costs and complexities related to the migration from interbank-offered interest rates to new reference rates. The proposed ASU, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,would establish

  • FRC publishes annual report as the transition to a new regulator progresses

    September 6, 2019 Published: FRC The Financial Reporting Council (FRC) has today published its annual report for 2018/19 setting out its progress against commitments to tackle poor-quality audit work, boost Enforcement resourcing and improve the quality of reporting.      During the year the FRC substantially revised the UK’s Corporate Governance Code and consulted on an overhaul of the

  • IFAC launches ‘Future-Fit’ series to address changing role of accountants

    September 5, 2019 Published: The Accountant With a changing and uncertain business environment, Chief Financial Officers (CFOs) and finance functions must evolve to sit at the heart of decision making within their organisations, according to a series launched by IFAC (the International Federation of Accountants). The series includes: – A vision for the CFO and

  • The Role of the Global Accountancy Profession in Addressing 21st Century Public Sector Challenges

    September 3, 2019 Published: IFAC The public sector is facing a multitude of challenges globally, from budgetary pressures and revenue limitations to intense scrutiny of public finances, all at the same time as rapidly increasing demand for high-quality public services. Around the world, common issues have emerged with many countries facing: – Increasingly less citizens

  • IFIAR comments on IAASB Exposure Drafts for ISQM 1, ISQM 2 & ISA 220

    July 1, 2019 Published: IFIAR The International Forum of Independent Audit Regulators (IFIAR) appreciates the opportunity to comment on the International Auditing and Assurance Standards Board (IAASB) exposure drafts for ISQM 1 (Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements), ISQM 2 (Engagement Quality Reviews)

  • The IIA Releases New Practice Guide on the Foundations of Internal Auditing in Financial Services Firms

    August 26, 2019 Published: The Institute of Internal Auditors The demand for internal auditors with financial services knowledge and experience is growing rapidly, propelled by regulatory pressures to appropriately staff internal audit programs with the right volume and caliber of resources. This has led many internal audit activities within the highly regulated financial services industry

  • UK NAO launches public consultation on new Draft Code of Audit Practice

    August 30, 2019 Published: The Accountant The UK National Audit Office (NAO) has launched a public consultation on its proposed update of the Code of Audit Practice ahead of it coming into effect in April 2020. The Code sets out what local auditors of relevant local public bodies (such as councils, police, fire and NHS

  • AICPA proposes changes to auditor reporting standards

    August 28, 2019 Published: AccountingToday The American Institute of CPAs’ Auditing Standards Board has proposed amendments to three sets of auditing standards for special-purpose, single and summary financial statements. For the exposure draft of the proposed Statement on Auditing Standards Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes from SAS No. 134, the board

  • IRS program to prevent personal data loss is delayed

    August 26, 2019 Published: AccountingToday Taxpayers’ personal information and tax account data remain at risk of being leaked from the Internal Revenue Service’s computer networks despite progress on a data loss prevention program, according to a new report. The IRS began a program known as the Safeguarding Personally Identifiable Information Data Extracts Project, which is

  • AICPA issues forensic accounting standards

    By Jeff DrewJuly 10, 2019 The AICPA on Wednesday issued new professional standards for members who perform forensic accounting services engagements. The Statement on Standards for Forensic Services No. 1 (SSFS 1) provides authoritative guidance for AICPA members providing litigation and investigative services. Specifically, the statement defines litigation and investigation for accounting purposes, outlines key considerations for

  • PCAOB issues staff guidance on auditing estimates, specialists

    August 22, 2019 Published: Journal of Accountancy The PCAOB released four staff guidance documents Thursday that are designed to help auditors implement the board’s new standards and amendments on auditing accounting estimates and the auditor’s use of the work of specialists. The new standards will take effect for audits of financial statements for fiscal years

  • ASB addresses challenges in auditing accounting estimates

    August 22, 2019 Published: Journal of Accountancy A proposal issued Thursday by the AICPA Auditing Standards Board (ASB) is intended to provide auditors with enhanced guidance on auditing accounting estimates. The proposal is intended to address the challenges that auditors face when auditing accounting estimates by providing risk assessment requirements and further audit procedures that: Are more

  • FASB proposes delay to Insurance Standards on long-duration contracts

    August 22, 2019 Published: The Accountant The Financial Accounting Standards Board (FASB) has issued a proposed Accounting Standards Update (ASU) that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply a standard that addresses this area of financial reporting. On 15 August 2018, the FASB

  • New AICPA discussion paper tackles materiality

    August 21, 2019 Published: The Accountant A new discussion paper from the American Institute of CPAs (AICPA) discusses the challenges of determining materiality in an attestation engagement when subject matters cannot be quantitatively measured. Materiality Considerations for Attestation Engagements Involving Aspects of Subject Matters That Cannot Be Quantitatively Measured, developed by a Working Group of

  • How to effectively implement innovation

    August 19, 2019 Published: Journal of Accountancy Business Insider not too long ago published a list of some of the worst product launches in history. While it’s funny to recall that Coke once thought it was a good idea to abandon its classic formula, many of these stories are learning opportunities for today’s accounting firms planning their strategies

  • GASB issues lease accounting implementation guide

    August 15, 2019 Published: Journal of Accountancy GASB issued an implementation guide Thursday that contains questions and answers about the board’s new lease accounting standard for state and local governments. Implementation Guide No. 2019-3, Leases, provides guidance for preparers on how to apply the rules in GASB Statement No. 87, Leases, including: – Scope and applicability. –

  • IOSCO to launch 2019 World Investor Week to promote investor education

    August 14, 2019 Published: IOSCO The International Organization of Securities Commissions (IOSCO) is preparing to launch its third annual World Investor Week (WIW) from 30 September to 6 October 2019, after its successful organization in 2017 and 2018. WIW is a week-long, global campaign, which aims to promote investor education and investor protection, highlighting the

  • Non-Financial Reporting: «…it is about staying in business»

    August 14, 2019 Published: Accountancy Europe This interview was realised by Ivan Chaliy, Chief Editor of IFRS Practice Journal with Hilde Blomme, Accountancy Europe Deputy CEO.   Ivan Chaliy (IC): What do you think of the obliged regulation of forming a sustainability report? Hilde Blomme (HB):  Since 2018 large EU companies need to report such

  • Auditors suffer when they issue negative opinions

    August 13, 2019 Published: International Accounting Bulletin Auditors get a bad reputation when they do their job properly according to new research. In a report being presented at the American Accounting Association’s annual meeting entitled Don’t Make Me Look Bad: How the Audit Market Penalizes Auditors for Doing Their Job, researchers found that flagging material weaknesses

  • Machine Learning: More Science Than Fiction

    August 12, 2019 Published: IFAC By: Narayanan Vaidyanathan, Head of Business Insights, ACCA Artificial intelligence (AI) is having an enormous impact on our consciousness. And machine learning (ML), which uses mathematical algorithms to crunch large data sets, is being increasingly explored for business applications in AI-led decision making. Following several years with the belief that AI

  • Eliminating biases that jeopardize audit quality

    August 1, 2019 Published: Journal of Accountancy By Billy E. Brewster, CPA, Ph.D.; Janet B. Butler, CPA (inactive)/CITP, CGMA, Ph.D.; and Ann L. Watkins, CPA, Ph.D. Certain cognitive biases pose threats to audit work, but it’s possible to recognize and overcome them. Auditing standards state that inquiry alone does not provide sufficient evidence regarding the

  • Eliminating biases that jeopardize audit quality

    August 1, 2019 Published: Journal of Accountancy By Billy E. Brewster, CPA, Ph.D.; Janet B. Butler, CPA (inactive)/CITP, CGMA, Ph.D.; and Ann L. Watkins, CPA, Ph.D. Certain cognitive biases pose threats to audit work, but it’s possible to recognize and overcome them. Auditing standards state that inquiry alone does not provide sufficient evidence regarding the

  • Companies find lease accounting more challenging than expected

    Both public and private companies are underestimating the challenges of transitioning to the new lease accounting standard, according to a new survey. The survey, by lease accounting technology company LeaseQuery, found that only 37 percent of companies in the early stages of implementation anticipate that their transition would be difficult. However, 67 percent of companies in

  • Voices Accounting in the fourth industrial revolution

    There seems to be much conversation recently around the notion that tax, bookkeeping and accounting jobs are going away over the next five to 10 years — eclipsed by the advancement of technology. Artificial intelligence, machine learning and blockchain are seen as emerging technologies that will lead to the automation and ultimate elimination of your

  • Better business decisions with assurance on non-financial information by Olivier Boutellis-Taft and Mario Abela

    People need to be able to rely on corporate information to make important decisions surrounding investing, buying products or signing employment contracts. Non-financial corporate information (NFI), such as environmental or social impacts, is essential to get the full picture of a company’s performance. Financial information alone cannot provide this anymore. Ultimately, integrating NFI leads to longer

  • Voices The human-technology balance that accounting needs

    Advances in technology are rewriting the rules for how business is done across all industries. In particular, the buzzwords of machine learning and artificial intelligence have sparked concern throughout the accounting profession. We’ve constantly seen predictions from multiple sources (like this study from McKinsey) that suggest as many as 800 million jobs will be lost worldwide

  • Voices GAAP vs. IFRS for property, plant and equipment

    In the area of fixed assets and the resultant depreciation there are some major differences between the GAAP rules codified in ASC Topic 360 and the IFRS rules in IAS 16. In GAAP there is only one way to initially record a fixed asset and that is the cost method. The cost method involves recording

  • IESBA proposes changes to code of ethics for accountants

    The International Ethics Standards Board for Accountants proposed some changes Wednesday to the International Code of Ethics for Professional Accountants to improve the mindset expected of accountants. The exposure draft, Proposed Revisions to Promote the Role and Mindset Expected of Professional Accountants, comes in response to calls from different stakeholders asking the Ethics Board to explore

  • FASB proposes standard for distinguishing liabilities from equity

    The Financial Accounting Standards Board released a proposed accounting standards update Wednesday with the goal of enhancing the guidance for financial instruments with the characteristics of liabilities and equity, including convertible instruments and derivatives. The proposed update aims to improve the guidance for both convertible instruments and the derivatives scope exception for contracts in a company’s own

  • Voices The economic case for ESG disclosure

    Tim Mohin is chief executive of the Global Reporting Initiative (GRI), an independent international organization that helps businesses and other organizations understand and communicate their sustainability impacts. When it comes to corporate transparency, the United States is at a crossroads. To one side is maintaining the status quo, with a patchy reporting landscape for environmental,

  • AICPA weighs in with IRS on excise taxes for donor-advised funds

    The American Institute of CPAs sent a set of recommendations to the Internal Revenue Service on the application of excise taxes to donor-advised funds. DAFs have become an increasingly prevalent way for philanthropists to give funds to charities, as an alternative to private foundations. Donors can claim tax deductions the following year, but recommend specific

  • Better business decisions with assurance on non-financial information

    by Olivier Boutellis-Taft and Mario Abela People need to be able to rely on corporate information to make important decisions surrounding investing, buying products or signing employment contracts. Non-financial corporate information (NFI), such as environmental or social impacts, is essential to get the full picture of a company’s performance. Financial information alone cannot provide this

  • Protecting clients: Manufacturers are high-risk for data breaches

    Cybersecurity is top of mind today for accountants, the industry having faced several high-profile attacks this year. But accounting professionals also have to keep in mind the vulnerability of their clients, and different types of clients face different levels of risk. One of the most highly sought after prizes for malicious hackers, after money, is

  • AICPA issues forensic accounting standards

    By Jeff DrewJuly 10, 2019 The AICPA on Wednesday issued new professional standards for members who perform forensic accounting services engagements. The Statement on Standards for Forensic Services No. 1 (SSFS 1) provides authoritative guidance for AICPA members providing litigation and investigative services. Specifically, the statement defines litigation and investigation for accounting purposes, outlines key considerations for

  • MAZARS welcomes consultation on CMA proposals

    July 19, 2019 Published: International Accounting Bulletin Marking the launch of the eight-week consultation period for the Competition & Markets Authority (CMA) proposals on statutory audit, Mazars says it supports the Department for Business, Energy & Industrial Strategy’s conclusion that the CMA had produced ‘a thorough and effective range of measures to create a genuinely

  • Closing the expectation gap in audit

    May 9, 2019 Published: ACCA Everyone closely connected to the audit profession, from regulators to the general public, will need to work together in order to close the expectation gap. Key messages: – The public sees audit as part of the solution for preventing company failure. – The public demands more responsibilities for auditors in

  • Statement on IOSCO Liquidity Management Recommendations for Investment Funds

    July 18, 2019 Published: IOSCO By: Ashley Alder, IOSCO Board Chair Liquidity problems which have recently affected some investment funds have been the subject of extensive media coverage. The Bank of England published a Financial Stability Report of the Financial Policy Committee (FPC), a committee of the Bank of England, earlier this month, which discusses

  • IASB proposes amendments to accounting for Deferred Tax

    July 17, 2019 Published: IFRS The International Accounting Standards Board (Board) has today published for public comment proposed changes to the IFRS Standard for income tax, IAS 12. The amendments clarify how companies account for deferred tax on leases and decommissioning obligations. IAS 12 specifies how a company accounts for income tax, including deferred tax,

  • Draft Code on Internal Audit aims to reduce risk of major UK Corporate collapses

    July 15, 2019 Published: International Accounting Bulletin A draft code to strengthen corporate governance and help reduce the risk of major corporate collapses in the UK by boosting the status, standards, scope and skills of internal audit has been launched by the Chartered Institute of Internal Auditors. The institute is now seeking feedback and is

  • FRC consults on enhanced Ethical and Auditing Standards

    July 15, 2019 Published: The Accountant The Financial Reporting Council (FRC) has issued a consultation proposing changes to the UK’s Ethical and Auditing Standards. The FRC proposes to set more stringent ethical rules for auditors, in response to findings from recent audit enforcement cases and from audit inspections. In response to feedback from investors, the

  • ASB addresses ERISA plan auditor reporting, other information in annual reports

    July 10, 2019 Published: Journal of Accountancy By Ken Tysiac In separate standards issued Wednesday, the AICPA Auditing Standards Board (ASB): – Changed requirements for auditor reporting and performance on ERISA (Employee Retirement Income Security Act) plan financial statements. – Amended rules for the purpose of improving transparency regarding auditors’ responsibilities related to other information

  • AICPA issues forensic accounting standards

    July 10, 2019 Published: Journal of Accountancy By Jeff Drew  The AICPA on Wednesday issued new professional standards for members who perform forensic accounting services engagements. The Statement on Standards for Forensic Services No. 1 (SSFS 1) provides authoritative guidance for AICPA members providing litigation and investigative services. Specifically, the statement defines litigation and investigation for accounting

  • No-Deal BREXIT Contingency measures in EU Budget

    July 9, 2019 Published: International Accounting Bulletin The European Council has adopted contingency measures on the implementation and financing of the 2019 EU budget in the event of a no-deal Brexit. The aim of the measures is to mitigate the impact of a no-deal scenario for funding in a wide range of areas such as

  • FASB seeks Stakeholders input on certain identifiable Intangible Assets and the subsequent accounting for Goodwill

    July 9, 2019 Published: FASB The Financial Accounting Standards Board (FASB) today issued an Invitation to Comment (ITC) seeking stakeholder input on the accounting for certain identifiable intangible assets acquired in a business combination and subsequent accounting for goodwill. Stakeholders are asked to comment on the ITC by October 7, 2019. Private companies and not-for-profit organizations currently have

  • FRC revises practice notes on Financial Sector Audits

    July 4, 2019 Published: The Accountant The Financial reporting Council (FRC) has issued a revision of Practice Note 19: The audit of banks and building societies in the United Kingdom. Such Practice Notes are aimed at helping practitioners to comply with the requirements of UK auditing standards, providing additional contextual material. The Practice Note has been

  • Auditing Accounting Estimates, Including Fair Value Measurements

    July 2, 2019 Published: PCAOB What was changed? The new standard replaces three existing standards by establishing a single standard that sets forth a uniform, risk-based approach. It emphasizes that auditors need to apply professional skepticism, including addressing potential management bias, when auditing accounting estimates. The new standard also provides more direction on addressing certain

  • Auditor´s Use of the Work of Specialists

    July 2, 2019 Published: PCAOB What was changed? Published: PCAOB The amendments adopted by the Board strengthen the requirements for evaluating the work of a company’s specialist, whether employed or engaged by the company. They are designed to increase audit attention in areas where a specialist is used and to align the applicable requirements with the