• COVID-19 pandemic reinforces benefits of outsourced accounting

    August 11, 2020 Published: AccountingToday By: Gregg Genovese It’s no secret that the rapid outbreak of COVID-19 throughout the world has had a drastic impact on the economy and overall business environment within the U.S. For many businesses, small and large, the measures taken to help stem the spread of the pandemic have led to shifting

  • 5 Things Internal Audit Must Tell the Audit Committee Now!

    August 3, 2020 Published: Internal Auditor By:Richard Chambers As we continue to navigate the treacherous risk landscape that includes an ongoing global pandemic, much is being said and written about whether internal auditors are stepping up for their organizations. I am certain we are contributing value during this time, but I also know it may

  • 4 steps to a sustainable recovery from Covid-19

    August 6, 2020 Published. Accountancy Europe By Olivier Boutellis-Taft The economy is in a bad shape. Our ecosystems and climate are in an even worse shape. During the global lockdowns we saw a massive drop in carbon emissions, but I fear that we will go back to normal, or perhaps even worse once the pandemic has

  • SEC Proposes to Improve the Retail Investor Experience through Modernized Fund Shareholder Reports and Disclosures

    August. 5, 2020 Published: SEC Amendments would update and tailor mutual fund and exchange-traded fund disclosures to retail investors’ needs The Securities and Exchange Commission today proposed comprehensive modifications to the mutual fund and exchange-traded fund disclosure framework to better serve the needs of retail investors. The proposed disclosure framework would feature concise and visually

  • FASB simplifies accounting for convertible instruments, contracts in own equity

    August 5, 2020 Published: Journal of Accountancy FASB issued a new standard Wednesday that is designed to simplify financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The board reduced the number of accounting models for convertible debt instruments and convertible preferred stock. This will result in fewer embedded conversion features being

  • Evaluating blockchain and internal control through a COSO lens

    August 4, 2020 Published: Journal of Accountancy Blockchain technology can be used to improve risk management and create better controls for organizations, according to a new paper released Tuesday by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). COSO is a voluntary private-sector organization that seeks to improve organizational performance and governance through

  • ACCA: Governments must take balance sheet approach to managing finances through Covid-19 crisis

    July 31, 2020 Published: The Accountant Government spending has rocketed over the last few months in order to mitigate some of the consequences of the Covid-19 pandemic, with the IMF calculating spending to be $9 trillion. The Association of Chartered Certified Accountants, the World Bank, and the International Federation of Accountants (IFAC) have expressed concern

  • FRC resolves record number of cases through constructive engagement

    31 July 2020 Published: FRC The Financial Reporting Council (FRC) has today published its second Annual Enforcement Review (AER). The report highlights driving audit quality improvements through securing cultural change by those responsible as a key priority for the Division with a greater use of constructive engagement and the wider deployment of tailored non-financial sanctions in cases

  • IAASB Auditor Reporting Post-Implementation Review: Stakeholder Survey

    Jul 27, 2020 Published: IAASB The International Auditing and Assurance Standard Board (IAASB) invites interested stakeholders to complete an online survey sharing their experience with, and providing feedback relating to, the Auditor Reporting Standards that were issued in 2015. The Survey also asks for input on your experiences with ISA 720 (Revised), The Auditor’s Responsibilities relating

  • SEC Announces Creation of the Event and Emerging Risk Examination Team in the Office of Compliance Inspections and Examinations and the Appointment of Adam D. Storch as Associate Director

    July 28, 2020 Published: SEC The Securities and Exchange Commission today announced the creation of the Event and Emerging Risks Examination Team (EERT) in the Office of Compliance Inspections and Examinations (OCIE). The EERT will proactively engage with financial firms about emerging threats and current market events and quickly mobilize to provide expertise and resources to

  • GASB requests input on proposals to improve key components of Government Financial Reports

    July 24, 2020 Published: GASB The Governmental Accounting Standards Board (GASB) today issued for public feedback a proposed Statement that is designed to improve to key components of the blueprint for state and local government annual financial reports.   The Exposure Draft, Financial Reporting Model Improvements, proposes improvements that are designed to: ·         Enhance the effectiveness of financial reports

  • Understanding the Roots in Internal Audit’s Response to COVID-19

    July 27, 2020 Published: Internal Auditor By: Richard Chambers To say the effects of COVID-19 have been significant for organizations large and small is to state the obvious. Each day brings fresh insights about control weaknesses, costly failures, and new risks exposed by the pandemic and its many related affronts. It is also obvious by now

  • FRC proposes amendments to UK accounting standards

    23 July 2020 Published: FRC The FRC has, today, issued two Exposure Drafts proposing amendments to UK and Ireland accounting standards. Both reflect topical issues. FRED 75 Draft amendments to FRS 104 – Going concern proposes to: a.    clarify the requirement to assess the going concern basis of accounting; and b.    require the disclosure of any related material uncertainties, when

  • IFAC Calls on the G20 to Stay Focused on the Future in the Global COVID-19 Response

    July 21, 2020 Published: IFAC The challenges raised by COVID-19 are unprecedented in the modern era; so too have been the responses from G20 governments. The short-term focus on the pandemic has been rightfully all encompassing. At the same time, we must not allow the immediate needs of the recovery to derail progress on other

  • High-quality disclosures needed to reflect impact of Covid-19

    July 21, 2020 Published: FRC The Financial Reporting Council (FRC) has completed its first thematic review of company reporting since the onset of Covid-19 pandemic.   The review found that although companies provided sufficient information to enable a user to understand the impact Covid-19 had on their performance, position and future prospects, some – particularly interim reports – would

  • FRC publishes annual report following transformative year

    17 July 2020 Published: FRC The Financial Reporting Council (FRC) today publishes its annual report, setting out significant progress to implement the recommendations for change of the FRC itself and in the activities it regulates. Under new leadership with a mandate to transform into the Audit, Reporting, Governance Authority (ARGA), the FRC has brought forward many of the

  • The 10 elements of financial statements, according to FASB

    July 16, 2020 Published: Journal of Accountancy FASB issued a proposed new chapter to its Conceptual Framework on Thursday that defines 10 elements of financial statements and seeks feedback from stakeholders. The proposed chapter is titled Concepts Statement No. 8, Conceptual Framework for Financial Reporting: Chapter 4, Elements of Financial Statements. In the proposal, the 10 elements of financial statements

  • COVID-19 Demands Audit Committee Effectiveness: 6 Recommendations

    July 13, 2020 Published: Internal Auditor By: Richard Chambers The challenges to business and society created by the biggest health crisis in a century have been manifold. Each day brings a new twist in how the COVID-19 pandemic impacts our safety, interactions, business, politics, and security. Yet, this relentless scourge may offer one significant benefit:

  • International Audit and Ethics Standards Boards Embrace Conclusion of Monitoring Group Review and Renewal of Commitment to Global Standards

    July 14, 2020 Published: IFAC The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) today welcomed the Monitoring Group’s recently released Paper: Strengthening the International Audit and Ethics Standard-Setting System, aimed at enhancing governance arrangements of the two standard-setting boards.  The enhancements reflected in the Monitoring Group’s Paper will

  • Promoting Clarity and Compatibility in the Sustainability Landscape.

    GRI and SASB announce collaboration July 12, 2020 Published: Sustainability Accounting Standards Board (SASB) Amid rising global demand for clarity in the sustainability reporting ecosystem, the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) are pleased to announce a collaborative workplan. SASB and GRI understand that the sustainability disclosure landscape can appear complicated.

  • Accounting estimates and disclosures addressed in new auditing standard

    July 10, 2020 Published: Journal of Accountancy By Ken Tysiac In a new standard issued Friday, the AICPA Auditing Standards Board provides requirements and guidance to auditors for auditing accounting estimates, which often is one of the most challenging areas a practitioner faces during an engagement. Statement on Auditing Standards (SAS) No. 143, Auditing Accounting Estimates

  • FRC strengthens auditing standard ISA 315

    July 9, 2020 Published: FRC The Financial Reporting Council (FRC) has today issued a revision of its standard for the identification and assessment of risks of material misstatement in an audit of financial statements. The revised standard (ISA (UK) 315 (Revised – July 2020) – Identifying and Assessing the Risks of Material Misstatement) adopts the revisions

  • Organizations’ Audit Committees Must Rise To the Challenges of the ‘New Normal’

    July 8, 2020 Published: The Institute of Internal Auditors (IIA) IIA, IFAC Issue Joint Call to Action for Addressing Risks More Comprehensively As organizations confront the immediate and longer-term implications of COVID-19, The Institute of Internal Auditors (IIA) and the International Federation of Accountants (IFAC) today issued a call to action for audit committees to ensure

  • A 6-point security checkup for working from everywhere

    July 7, 2020 Published: Journal of Accountancy By Audrey Katcher, CPA/CITP, CGMA No one has ever seen a year like 2020. These are unprecedented times for all of us — individuals, families, and organizations alike. As we continue adapting to the changing conditions, it is important for organizations to review the actions they have taken

  • FRC principles for operational separation of audit practices

    July 6, 2020 Published: FRC Today the FRC has announced its principles for operational separation of the audit practices of the Big Four firms. The objectives of operational separation, which is world leading, are to ensure that audit practices are focused above all on delivery of high-quality audits in the public interest, and do not rely on persistent

  • CIMA: UK Government should concentrate on Four Key Areas for Covid-19 Recovery

    July 2, 2020  Published: The Accountant  The Chartered Institute of Management Accountants (CIMA) has published a set of recommendations designed to support the UK Government in helping the country recover from the Covid-19 pandemic. CIMA has called on the UK Government to concentrate on four key areas: Providing businesses and consumers with confidence to invest

  • Audit firms implement ‘additional measures’ to enhance their evaluation of going concern assessments

    July 2, 2020 Published: FRC Audit firms have introduced a range of additional measures to enhance their evaluation of companies’ going concern assessments, since the start of the Covid-19 emergency, according to a review initiated and undertaken by the Financial Reporting Council (FRC). The FRC’s review covered the going concern policies and procedures of the seven largest

  • Auditors can play key role in ESG information assurance

    July 1, 2020 Published: Journal of Accountancy The increasing attention paid to company disclosures on environmental, social, and governance (ESG) information in the current environment means auditors have a growing role to play related to these disclosures. A new Center for Audit Quality (CAQ) report, The Role of Auditors in Company-Prepared ESG Information: Present and Future, addresses

  • Combinations of businesses under common control—one size does not fit all

    June 29, 2020 Published: IFRS The International Accounting Standards Board (Board) is carrying out a research project to consider filling a gap in IFRS Standards by improving the comparability and transparency of reporting on combinations of businesses under common control. IFRS 3 Business Combinations covers how to account for mergers and acquisitions between unrelated parties but it

  • IOSCO publishes Good Practices on processes for deference

    June 26, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published a series of eleven good practices on processes for deference to assist regulatory authorities in mitigating the risk of unintended, regulatory-driven market fragmentation and to strengthen international cooperation. Wholesale securities and derivatives markets are global in nature and

  • Statement on the Continued Importance of High-Quality Financial Reporting for Investors in Light of COVID-19

    June 23, 2020 Published: SEC By: Sagar Teotia, Chief Accountant On April 3, 2020, the Office of the Chief Accountant (OCA) issued a statement regarding the importance of high-quality financial reporting in light of the significant impacts of COVID-19. At that time, in addition to facing a number of operational and other challenges, many public

  • New Internal Audit Foundation Report Challenges Internal Auditor Functions to Be Value Drivers

    June 24, 2020 Published: The Institute of Internal Auditors This new Internal Audit Foundation report, based on the findings of a global survey and in-depth interviews with world-class internal audit functions, addresses the question, “What is the added value of internal auditing?” It suggests concrete pointers on how to define and measure added value, and

  • SEC staff guidance addresses pandemic-related disclosures

    June 23, 2020 Published: Journal of Accountancy Public companies need to carefully consider their obligations in disclosing the coronavirus pandemic’s effect on their operations, liquidity, and capital resources, according to staff guidance issued Tuesday by the SEC Division of Corporation Finance. The division is monitoring how companies are disclosing the effects and risks related to the pandemic

  • 4 key COVID-19 audit risks for 2020 year ends

    June 5, 2020 Published: Journal of Accountancy By Bob Dohrer, CPA, CGMA, and Carl Mayes, CPA Many auditors have begun to turn their sights to their next group of audits: clients with 2020 fiscal year ends. The World Health Organization declared a public health emergency on Jan. 30, 2020, meaning many of these clients will

  • Lease accounting effective date deferred for federal entities

    June 19, 2020 Published: Journal of Accountancy Federal government entities will have extra time to implement a new lease accounting standard after the Federal Accounting Standards Advisory Board (FASAB) announced Friday that it is delaying the standard’s effective date. FASAB issued Statement of Federal Financial Accounting Standards (SFFAS) 58, Deferral of the Effective Date of SFFAS 54, Leases.

  • Heading off Paycheck Protection Program fraud

    June 19, 2020 Published: Journal of Accountancy By Kelly Hinchcliffe Accountants can play a role in making sure the money set aside to help small business goes to the right places. As the federal government distributes $659 billion in forgivable loans to small businesses as part of the Paycheck Protection Program (PPP), it’s important that

  • 17 strategic questions to answer before reopening

    June 17, 2020 Published: Journal of Accountancy By Anita Dennis With regulations being relaxed in many states, organizations are turning their attention to how and whether to reopen their offices. Though health and safety questions are top of mind for many, strategic issues are also important to consider. In the midst of all the damage it has

  • Accountancy Europe leads the non-financial reporting debate

    June 17, 2020 Published: Accountancy Europe Accountancy Europe releases 3 publications to shape the debate on non-financial information (NFI) reporting. Accountants have the skills and knowledge to lead this discussion. Based on their expertise, Accountancy Europe urges more reliable EU NFI reporting, offers a view on NFI assurance, and progresses the debate on a global NFI standard setter. In our response to the

  • Impairment of assets in the context of COVID-19

    June 12, 2020 ICAEW’s Financial Reporting Faculty considers accounting requirements relating to the impairment of assets in the context of the COVID-19 pandemic in their latest short webcast. Under both UK and international accounting standards, the principle exists that assets should be stated at no more than their recoverable amount in an entity’s balance sheet,

  • FASB addresses insurance, convertible instruments, gifts-in-kind

    June 10, 2020 Published: Journal of Accountancy By Ken Tysiac FASB voted Wednesday to propose delaying the effective date of its standard on long-duration insurance contracts by one year and to approve two new standards. The board will issue Accounting Standards Updates (ASUs) on: Improving convertible instruments and contracts in an entity’s own equity. Not-for-profit

  • Global economy faces a tightrope walk to recovery

    June 10, 2020 Published: OECD The Covid-19 pandemic has triggered the most severe recession in nearly a century and is causing enormous damage to people’s health, jobs and well-being, according to the OECD’s latest Economic Outlook. As restrictions begin to ease, the path to economic recovery remains highly uncertain and vulnerable to a second wave of

  • AICPA recommends changes to e-signature requirements

    June 8, 2020 Published: Journal of Accountancy By Sally P. Schreiber, J.D. The AICPA Tax Executive Committee (TEC) has sent the IRS a letter requesting the Service update and modernize its e-filing signature requirements in four areas in response to the COVD-19 pandemic but with the aim of adopting the changes permanently to make it easier for

  • Reporting at the Speed of Risk: 4 Strategies for Success

    June 08, 2020 Published: Internal Auditor By: Richard Chambers News last week of improvement in the U.S. jobless situation brought a glimmer of hope that, perhaps, the very worst may be behind us. At least for now. But disruption continues to engulf our personal and professional lives, as the twin impacts of the coronavirus COVID-19

  • ISA 540 (Revised) Implementation: Illustrative Examples for Auditing Simple and Complex Accounting Estimates

    May 29, 2020 Published: IAASB The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared illustrative examples for auditing simple and complex accounting estimates. The attached examples are designed to illustrate how an auditor could address certain requirements of ISA 540 (Revised), and have been developed to assist the auditor in understanding

  • The IIA Releases New Practice Guide on Auditing Conduct Risk

    June 5, 2020 Published: The Institute of Internal Auditors Organizational culture ― and how an organization comports itself with regard to conduct ― drives how business is done. It also underlies the effectiveness of the control environment, which supports the achievement of an organization’s objectives. Poor culture and ineffective management of employee conduct has contributed

  • FASB offers limited effective date delays on revenue recognition and leases standards

    June 3, 2020 Published: FASB One-Year Delays Extended to Certain Companies and Organizations The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that grants a one-year effective date delay for certain companies and organizations applying the revenue recognition and leases guidance. Early application continues to be permitted. “The FASB issued the ASU

  • Risk Committee TORS published by the Chartered Governance Institute

    June 2, 2020 Published: The Accountant The Chartered Governance Institute has published new Terms of Reference for risk committees, which are intended as a guide for companies to adapt to their needs where the board decides it is necessary or desirable to have a separate risk committee Peter Swabey, Policy and Research Director at the Institute comments, “In recent years, the importance of

  • IOSCO encourages issuers’ fair disclosure about COVID-19 related impacts

    May 29, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today issued a public statement highlighting the importance to investors and other stakeholders of having timely and highquality information about the impact of COVID-19 on issuers´ operating performance, financial position and prospects. The pandemic and the uncertainty it has caused

  • A 5-step plan for adding new tech amid COVID-19

    June 1, 2020 Published: Journal of Accountancy By Amy Vetter, CPA/CITP, CGMA The coronavirus pandemic has changed the blueprint for seeking, choosing, and implementing The COVID-19 crisis has altered everyone’s lives, changing the way we do business now and for the foreseeable future. These changes have made technology even more important. With remote work now a necessity

  • CIMA launches free business recovery toolkit

    May 27, 2020 Published: The Accountant The Chartered Institute of Management Accountants (CIMA) has launched Reimagine business resilience in the Covid-19 World, a free resource to help organisations navigate the short- and long-term ramifications of the Covid-19 pandemic. The guide has drawn on the experience of CIMA members in business and finance, and the toolkit provides