• Covid-19 strengthens need for audit improvement

    November 12, 2020 Published: FRC Auditors must redouble their efforts to remedy inconsistent audit quality, which has become even more important in the face of the unprecedented economic turbulence brought by Covid-19, the Financial Reporting Council (FRC) has urged in Developments in Audit 2020 today. The FRC’s Developments in Audit 2020 reports audit quality remained too inconsistent in the most

  • IPSASB delays upcoming Standards

    November 9, 2020 Published: The Accountant The International Public Sector Accounting Standards Board (IPSASB) has delayed the effective dates of a number of standards and amendments by one year to 1 January 2023, due to the challenges and disruption caused by the Covid-19 pandemic. IPSASB chair Ian Carruthers said: “The COVID-19 pandemic has created significant

  • FRC Statement on Non-Financial Reporting Frameworks

    November 10, 2020Published: FRCClimate change is one of the defining issues of our time and, by its nature, material to companies’ long-term success. Boards have a responsibility to consider their impact on the environment and the likely consequences of any business decisions in the long-term. Our 2020 review of climate-related considerations in corporate reporting and auditing found that boards and

  • IFRS Foundation Aims for Coherence, Not Complexity

    November 6, 2020 Published: SASB As someone who started my career as a technical accountant and today leads a global sustainability accounting organization, I have been immersed in the world of financial reporting longer than I care to admit. In my view, the IFRS Foundation’s Consultation Paper on Sustainability Reporting is the most significant development in accounting

  • ESG Factors gather pace in Company Reporting

    November 5, 2020 Published: International Accounting Bulletin Environmental, social and governance (ESG) factors continue to grow in prominence in annual reports, according to new research by Deloitte Deloitte’s Annual Report Insights, which analysed 50 year-end reports across the FTSE 350, found that over three quarters (78%) set out a clear purpose beyond making profit for

  • ASB proposal addresses auditing of fair value estimates of financial instruments

    November 4, 2020 Published: Journal of Accountancy The AICPA Auditing Standards Board (ASB) proposed a standard Wednesday that would provide practitioners with more guidance on auditing management’s estimates of the fair value of financial instruments, including on the use of pricing services. Proposed Statement on Auditing Standards (SAS), Amendments to AU-C Sections 501, 540, and 620 Related to

  • Business Continuity and Cybersecurity Lead Risks in a COVID-Disrupted Year

    November 2, 2020 Published: The Institute of Internal Auditors (IIA) Second-annual OnRisk report reveals pandemic’s lasting impact on organizations Unprecedented challenges brought by the COVID-19 pandemic as well as expanding reliance on technology and data collection are driving business continuity/crisis management and cybersecurity as top-rated risks, according to a new report from The Institute of Internal

  • FRC publishes major local audit inspection results

    30 October 2020 Published: FRC The Financial Reporting Council (FRC) has today published its inspection findings into the quality of major local audits in England for the financial year ended 31 March 2019. This is the first such report published by the FRC. Of the 271 major local audits in the FRC’s inspection scope, the FRC reviewed 15

  • IOSCO recommendations aim to help develop emerging capital markets

    October 30, 2020 Published: IOSCO The IOSCO Growth and Emerging Markets Committee (GEMC) today published a report examining the challenges and opportunities that Emerging Markets jurisdictions (EMs) face when developing their capital markets as key drivers of economic growth and financial resilience and inclusion. The report makes five key recommendations that EMs should consider when

  • Reporting on the new Corporate Governance Code is a mixed picture

    November 26, 2020 Published: FRC The revised UK Corporate Governance Code provides an opportunity for companies to report to their stakeholders in a way that allows them to communicate high-quality information about the way in which their governance functions to deliver a company’s purpose and strategy. Although some companies have embraced the opportunities the revised

  • Cybersecurity provides opportunities for auditors to serve

    October 27,2020 Published: Journal of Accountancy Cybersecurity challenges require a response from every sector of the economy. Public company auditors can do their part by providing services to clients beyond the financial statements, according to a Center for Audit Quality (CAQ) report published Tuesday. Auditing standards require financial statement auditors to obtain an understanding of how the

  • ACCA: COVID-19 poses new Ethical Challenges for accountants

    October 26, 2020 Published: The Accountant The Association of Chartered Certified Accountants (ACCA), has launched a white paper, Ethics in a Covid-19 world, which explores the role of ethics against the backdrop of the pandemic. The paper revealed that one in five respondents had directly or indirectly, via a work colleague, encountered a situation where ethics

  • With New Standards in Place, Proactive Quality Management Will Underpin the Next Era of Audit Transformation

    October 23, 2020 Published: IAASB By: Tom Seidenstein, Chair, International Auditing and Assurance Standards Board Last year, as a non-auditor, I joined the International Auditing and Assurance Standards Board (IAASB) with a firm conviction in the value of the audit profession. At its best, the audit profession should drive greater confidence and trust in our

  • Consultation on revised auditing standard for the auditor’s responsibilities relating to fraud

    October 20, 2020 Published: FRC The Financial Reporting Council (FRC) has tody launched a consultation on the proposed revision of its UK auditing standard ISA (UK) 240 (Updated January 2020) – The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements. ISAs (UK) are based on the underlying ISAs issued by the International Auditing

  • Accounting Today: Studies question need for auditor rotation

    October 7, 2020 Published: American Accounting Association By: Michael Cohn, editor-in-chief of AccountingToday.com A pair of academic studies casts doubt on the value of mandatory rotation of auditing firms and lead engagement partners. The Public Company Accounting Oversight Board has come out firmly against proposals for mandatory audit firm rotation in the U.S., especially after

  • FASB proposes 3 targeted lease accounting changes

    October 20, 2020 Published: Journal of Accountancy FASB issued a proposal Tuesday that is designed to improve three targeted areas of its lease accounting guidance. The proposed amendments are designed to represent FASB’s commitment to take timely action based on what the board learns during its post-implementation review process of major standards, FASB Chair Richard Jones said

  • HLB expands its global reach to Chile

    October 19, 2020 Published: International Accounting Bulletin HLB expands its global reach as it welcomes HLB Surlatina Chile as its newest firm in Chile The firm – established in 1971 and previously Grant Thornton Chile – is one of the country’s leading professional services firms with expertise in audit, tax, outsourcing, IT & process consulting,

  • SEC aims to reduce unnecessary auditor independence red flags

    October 16, 2020 Published: Journal of Accountancy The SEC adopted amendments Friday that are designed to prevent the triggering of technical auditor independence rules violations in situations that don’t necessarily impair an auditor’s judgment or impartiality. The changes are designed to prevent auditors, their clients, and audit committees from spending time, attention, and other resources considering relationships

  • Internal Audit: Do Your Part and #BeCyberSmart

    October 11, 2020 Published: Internal Auditor By: Richard Chambers Cybersecurity remains one of the top and most vexing risks facing organizations large and small. Even as many in the global community face existential challenges from the COVID-19 pandemic, the ever-evolving risk of cyberattacks continues to find new ways to challenge controls and processes. And it only

  • IPSASB Welcomes B20 Policy Recommendations, including Focus on Public Sector Integrity

    October 09, 2020 Published: IPSASB The International Public Sector Accounting Standards Board has welcomed the B20 Policy Recommendations to the G20, published earlier this week. The report includes 22 policy recommendations to the G20 identified by the global business community to support healthy economies and build back better from the COVID-19 pandemic. “The global economy is in

  • Global Ethics Board elevates importance of Accountants’ Societal Role and Strengthens Mindset Expectations

    October 05, 2020 Published: IESBA The International Ethics Standards Board for Accountants (IESBA) today released revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to better promote the role and mindset expected of all professional accountants. The revisions explicitly recognize that the accountancy profession is entrusted with public confidence in the wide-ranging

  • Progress on the road to a European Climate Law

    October 9, 2020 Published: Climate Disclosure Standards Board (CDSB) The plenary session of the European Parliament has confirmed this week that it is willing to support an ambitious 60% emission reduction target for 2030 as part of the European Climate Law. The decision was made by a narrow margin in European Parliament and negotiations with

  • Audit committee cybersecurity disclosures rising in proxy statements

    October 12, 2020 Published: Journal of Accountancy Public company audit committees continue to increase the level of their disclosures around cybersecurity in proxy statements, according to a yearly analysis performed by Audit Analytics in cooperation with the Center for Audit Quality (CAQ). The biggest increase in audit committee disclosures involved cybersecurity, according to the 2020 Audit

  • Europe’s Internal Auditors Are Already Identifying the Risks for 2021

    October 4, 2020 Published: Internal Auditor As we enter the fourth quarter of a historically difficult and disruptive year, internal audit leaders around the world are looking to next year with some degree of trepidation. If the COVID-19 pandemic has taught us anything, it is that new risks can emerge at lightning speed and have

  • Reminder: IAASB Auditor Reporting Post- Implementation Review Stakeholder Survey Closes October 23

    October 06, 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

  • Covid-19 disruption forces UK companies to embrace virtual Annual General Meeting (AGM)

    October 6, 2020 Published: FRC Disruption caused by the Covid-19 pandemic has forced UK companies to radically change their approach to holding physical AGMs and embrace hybrid and virtual AGMs. However, it is paramount any longer lasting changes uphold the rights of shareholders according to a new review by the Financial Reporting Council (FRC).   The FRC’s

  • ‘Direct examination’ engagement created by SSAE No. 21

    September 30, 2020 Published: Journal of Accountancy Practitioners will be able to perform a new engagement known as a direct examination for clients under a new standard published Wednesday by the AICPA Auditing Standards Board (ASB). Statement on Standards for Attestation Engagements (SSAE) No. 21, Direct Examination Engagements, gives a practitioner the ability to measure or evaluate underlying

  • Commission unveils first-ever rule of law report: coronavirus emergency measures must respect EU’s fundamental principles and values

    September 30, 2020 Published: European Commission   The Commission presented its first EU-wide Rule of Law Report, a new preventive tool at the heart of the new European Rule of Law Mechanism. The Report, developed in close dialogue with all 27 Member States and stakeholders, covers four main pillars of the rule of law in the EU: national justice,

  • CDSB welcomes WEF report on common metrics

    September 24, 2020 Published: Climate Disclosure Standards Board (CDSB) The World Economic Forum’s report on common metrics and consistent reporting is written in partnership with Deloitte, EY, KPMG and PwC. The last two weeks have demonstrated a clear alignment from institutions and investors globally on the need for a comprehensive approach to climate-related reporting.   CDSB was born

  • What COVID-19 has taught corporate boards

    September 30, 2020 Published: Journal of Accountancy In previous years, work as a corporate director generally was predictable. Board members could count on an approximate number of meetings, oversight topics that generally remained the same, and business conversations inside and outside of the boardroom. Everything changed in March, when the COVID-19 pandemic disrupted business and

  • How auditors can enhance the reliability of non-GAAP reporting

    September 29, 2020 Published: Journal of Accountancy Engaging external auditors to perform procedures outside the financial statement audit related to non-GAAP financial measures or key performance indicators (KPIs) can raise public confidence in this information, according to a Center for Audit Quality (CAQ) report issued Tuesday. In an audit of the financial statements, auditors generally

  • SEC Proposes Rules to Extend Regulations ATS and SCI to Treasuries and Other Government Securities Markets

    September 28, 2020 Published. SEC Proposed Rules Would Enhance Operational Transparency and System Integrity for Government Securities Alternative Trading Systems; Agency Also Issues a Concept Release on Electronic Fixed Income Trading Platforms The Securities and Exchange Commission today announced a proposal to enhance the operational transparency, system integrity, and regulatory oversight for alternative trading systems

  • With New Standards in Place, Proactive Quality Management Will Underpin the Next Era of Audit Transformation

    September 23, 2020 Published: IAASB By: Tom Seidenstein, IAASB Chair Last year, as a non-auditor, I joined the International Auditing and Assurance Standards Board (IAASB) with a firm conviction in the value of the audit profession. At its best, the audit profession should drive greater confidence and trust in our economy and the functioning of

  • FRC requires improvements in the reporting of revenue and leases in company reports

    September 24, 2020 Published: FRC Ahead of the next reporting cycle for financial statements, the Financial Reporting Council (FRC) has today published two reviews into the reporting of revenue and leases identifying a number of critical areas where companies need to improve their reporting.    These reviews covered current reporting on IFRS 15 Revenue from Contracts with

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

    September 21, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published final guidance to help its members address potential conflicts of interest and associated conduct risks market intermediaries may face during the debt capital raising process. The guidance also seeks to address some specific concerns observed by certain regulators

  • Corporate governance in COVID-19: Cybersecurity and technology considerations

    September 18, 2020 Published: Journal of Accountancy By Audrey Katcher, CPA/CITP, CGMA Cybersecurity oversight is a key fiduciary responsibility for a board of directors and was a significant concern for companies even before the COVID-19 pandemic forced so many organizations to suddenly shift to remote work. Data breaches and other cyber threats pose significant competitive,

  • FASB approves accounting updates to presentation and disclosures by not-for-profit entities for contributed nonfinancial assets

    September 17, 2020 Published: FASB The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) intended to improve transparency in the reporting of contributed nonfinancial assets, also known as gifts-in-kind, for not-for-profit organizations. Examples of contributed nonfinancial assets include fixed assets such as land, buildings, and equipment; the use of fixed assets

  • Internal Audit, COVID-19 Risks, and the Year Ahead

    September 13, 2020 Published: Internal Auditor Readers of my blog know that, in recent years, I have constantly emphasized the importance of internal auditors anticipating future risks for our organizations. As I observed in a 2018 blog post: As a profession, internal auditors have cultivated a long and respected legacy as purveyors of hindsight. Almost all of

  • IAASB seeks feedback on Fraud, Going Concern in Financial Statement Audits

    September 15, 2020 Published: IAASB The International Auditing and Assurance Standards Board (IAASB) today opened a public consultation, Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit. The consultation will remain open until January 12,

  • Consistency sought in sustainability, corporate reporting through global effort

    September 11, 2020 Published: Journal of Accountancy The movement toward a unified global approach to sustainability accounting standards and comprehensive corporate reporting took a step forward Friday with the support of leading global organizations. The International Federation of Accountants (IFAC) called for the creation of a new sustainability accounting standards board that would exist alongside the International

  • SEC Modernizes Disclosures for Banking Registrants

    September 11, 2020 Published: SEC Modernization of Statistical Disclosures for Bank and Savings and Loan Registrants The Securities and Exchange Commission today adopted updates to statistical disclosures for bank and savings and loan registrants.  The rules update the disclosures that investors receive and eliminate disclosures that overlap with Commission rules, U.S. GAAP or IFRS.  The

  • IIA Releases ‘Auditor Independence in Times of Crisis’

    September 9, 2020 Published: The Institute of Internal Auditors (IIA) Understanding COVID-19’s impact on internal audit is crucial to remaining relevant, demonstrating value, and focusing on issues most important to the organization. Key for internal auditors is to maintain an objective mindset, keep the board/audit committee informed, and help the organization learn and improve. The

  • Call for Participants in new Lab project: reporting on risks, uncertainties and scenarios

    10 September 2020 Published: FRC The FRC’s Financial Reporting Lab is inviting investors and companies to participate in a new project on corporate disclosures on risks, uncertainties and scenarios.   The context for the project Investors and other stakeholders are increasingly looking for information from companies about how they will evolve, adapt and respond to changes in

  • Small and medium-sized accounting practices (SMPs) are a powerful force for public and social good.

    September 8, 2020 Published: The Association of Chartered Certified Accountants (ACCA) In their support for the small and medium-sized enterprise (SME) sector (that represents about 90% of businesses and more than 50% of employment worldwide according to the World Bank) they are helping this vital part of the economy operate more effectively, powering economic growth,

  • What COVID-19 made clear: corporate governance needs to focus on the right risks

    September 8, 2020 Published: Accountancy Europe By Olivier Boutellis-Taft This is the second blog of our COVID-19 sustainable recovery series. Read our first blog 4 steps to a sustainable recovery from COVID-19 to find out what our CEO, Olivier Boutellis-Taft, envisages a sustainable recovery to look like. Is corporate governance just a set of rules that we

  • More flexibility for agreed-upon procedures

    September 1, 2020 Published: Journal of Accountancy   SSAE No. 19 makes changes to standards that may enhance practitioners’ ability to provide value to report users. Agreed-upon procedures provide practitioners with an important opportunity to use their skills and training to help clients with engagements that differ from both audits and consulting engagements. A carefully constructed agreed-upon procedures engagement

  • AICPA teams with GRI, SASB on sustainability assurance

    September 3, 2020 Published: AccountingToday The American Institute of CPAs has received an increasing number of questions on sustainability assurance engagements and has joined forces with the Global Reporting Initiative on a document to answer some of those questions, while continuing to work with other standard-setters in the environmental, social and governance reporting space. The

  • Voices: Professional skepticism: A critical element of the COVID-era audit

    September 3, 2020 Published: Accounting Today By: Bob Dohrer, Chief auditor, American Institute of CPAs The ways we work, communicate and connect have greatly evolved thanks to innovations that make it possible for organizations to operate in a more efficient and rapid manner. COVID-19 has pushed more organizations to adopt technology, presenting new challenges for

  • New Illustrative Examples for ISA 540 (Revised) Implementation: Expected Credit Losses

    August 31, 2020 Published: IFAC The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group today published illustrative examples for auditing expected credit loss (ECL) accounting estimates. The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised). They were developed to assist the auditor in understanding how ISA 540 (Revised) may

  • Audit Analytics: Transparency Reports across Europe

    August 26, 2020 Published: International Accounting Bulletin More than six months have passed since the Brydon Review announced its recommendation to create a more transparent audit profession. In the wake of recent scandals involving companies such as Thomas Cook and Patisserie Valerie, these changes may be long overdue. While audit firms are already investing significant