• The rise of cybercrime in the accounting profession continues

    August 24, 2020 Published: AccountingToday The July 15 tax filing deadline is finally behind you. Now is the perfect time to address the growing number of cyberattacks still taking place in the accounting industry. Many accounting practices are reporting that IT vendors and employers rushed to provide access for remote employees without fully understanding how

  • Climate-Related Disclosure is a Catalyst for Stronger Business Performance

    August 18, 2020 Published: Sustainability Accounting Standards Board (SASB) The following guest blog about sustainable business was written by Peggy Smyth, CFO at National Grid, US, and FSA Credential holder. The needs of both our customers and our investors are rapidly changing. They are more socially aware than ever and want to work with companies that

  • SEC Proposes Data Security Enhancements to the CAT NMS Plan

    August 21, 2020 Published: SEC The Securities and Exchange Commission today proposed amendments to the national market system plan governing the Consolidated Audit Trail (the “CAT NMS Plan”) to bolster the Consolidated Audit Trail’s (“CAT”) data security.  While the CAT NMS Plan currently sets forth a number of requirements regarding the security and confidentiality of

  • Video interview tips for forensic accountants and auditors

    August 21, 2020 Published: Journal of Accountancy By Charles L. McGimsey, CPA/CFF, and Natalie S. Lewis, CPA/CFF Social distancing practices implemented to slow the spread of COVID-19 have required the use of remote interviews in many situations, including forensic accounting investigations and financial audits. Given the importance of being able to evaluate nonverbal cues and

  • SMP Pacesetters Embracing Technology

    August 6, 2020 Published: IFAC In many countries Small and Medium Sized Enterprises (SMEs) are the growth engine of the economy.  In the dynamic world in which we live the needs of this sector in terms of business planning and supporting growth are increasingly served by the digitalized Small and Medium Sized accountancy practice –

  • FRC statement on Accounting for Lease Modifications (Amendment to IFRS 16 – Covid-19-Related Rent Concessions)

     August 18, 2020 Published: FRC The Financial Reporting Council (FRC) has today confirmed it will not pursue regulatory action where issuers take advantage of the provisions contained in the Accounting for Lease Modifications (Amendment to IFRS 16 – Covid-19-Related Rent Concessions) before adoption by the EU. IFRS 16 Leases contains accounting requirements for changes in lease payments, including

  • Auditors show resilience during pandemic, CAQ’s Lindsay says

    August 17, 2020 Published: Journal of Accountancy Public company auditors have responded quickly and effectively to the coronavirus pandemic to help preserve the public’s critically important confidence in capital markets. That’s the conclusion drawn by Center for Audit Quality (CAQ) Executive Director Julie Bell Lindsay, who said in a telephone interview that auditors have used

  • FASB addresses valuation of private company share-based awards

    August 17, 2020 Published: Journal of Accountancy FASB issued a proposal Monday that is designed to make it easier for private companies to determine the fair value of a share-option award on its grant date or modification date. The proposal was introduced by the Private Company Council (PCC), which identified determining the fair value in these circumstances

  • Review of the IFRS for SMEs Standard—what does alignment mean?

    August 14, 2020 Published: IFRS The International Accounting Standards Board (Board) published a Request for Information as part of the second comprehensive review of the IFRS for SMEs Standard. The objective of the Request for Information is to seek views on whether and how aligning the IFRS for SMEs Standard with the full IFRS Standards could better serve users of financial

  • IOSCO examines the evolution of liquidity provision in equity securities markets

    August 11, 2020 Published: IOSCO The Board of the International Organization of Securities Commissions (IOSCO) today published a report that explores how liquidity provision has evolved in equity securities markets in recent years. The report, titled Liquidity Provision in the Secondary Markets for Equity Securities, identifies some of the key elements of market making programs that

  • 6 new business realities in the pandemic era

    August 13, 2020 Published: Journal of Accountancy Hosted by Neil Amato The changes brought about and accelerated by the COVID-19 pandemic are numerous. Our day-to-day lives have been altered, forcing rapid adaptation. A new report from the Association of International Certified Professional Accountants and EY Seren, explores the patterns of behavior emerging from this uncertain

  • Digitization and the global pandemic

    August 10, 2020 Published: ACCA This report examines the impact of COVID-19 in areas that relate to the digitisation agenda of organisations. This is an evolving picture and the perspectives draw upon first-hand accounts from professionals around the world, using ACCA’s framework for recovery. ACCA’s report, COVID-19 Global Survey: The Road to Recovery? sets out a three

  • 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