• GASB Issues Implementation Guide on Fiduciary Activities

    June 17, 2019 Published: GASB The Governmental Accounting Standards Board (GASB) has issued a new Implementation Guide that contains questions and answers about the GASB’s recently issued standards on accounting and financial reporting for fiduciary activities. Implementation Guide No. 2019-2, Fiduciary Activities, answers many questions about how to apply the provisions of GASB Statement No. 84, Fiduciary Activities.

  • IIA Sets Exposure Period For Proposed Updates to ‘Three Lines of Defense’

    June 17, 2019 Published: IIA The Institute of Internal Auditors (IIA) announced today that it is seeking public comment June 20–Sept. 19 on proposed updates to the Three Lines of Defense, a widely accepted and used model that addresses the many issues around organizational risk management and control. The Three Lines of Defense describes the

  • ASB proposes guidance on PPPs and APAs

    June 13, 2019 Published: Journal of Accountancy GASB proposed new guidance that it said is intended to improve accounting and financial reporting for public-private and public-public partnership arrangements (both referred to as PPPs) and availability payment arrangements (APAs). GASB said in a press release that the proposal would define a PPP as an arrangement in

  • UK Government urged to introduce new audit regulator legislation before year-end

    June 12, 2019 Published: International Accounting Bulletin The Chartered Institute of Internal Auditors has urged the government to introduce legislation to establish a new audit regulator before the end of 2019 ‘under the swiftest possible parliamentary timetable’. The aim is to ensure the UK has a regulator that is best in class for corporate governance and help

  • Professional Ethics Executive Committee (PEEC) updates 2 ethics interpretations

    June 12, 2019 Published: Journal of Accountancy The AICPA Professional Ethics Executive Committee (PEEC) has issued revised ethics interpretations addressing state and local government client affiliates and provision of information system services to attest clients. If you audit reports on the financial statements of state or local governments, you must consider your independence responsibilities when

  • How to motivate and retain your talent

    June 10, 2019 Published: Journal of Accountancy By Dawn Wotapka  When it comes time to grow their business and bolster their reputation, accounting firms often turn to recruiters to attract dazzling — and, likely, expensive — new talent. Perhaps a better strategy is to develop existing employees, according to Philip Palaveev, the founder and CEO of

  • Emerging Market regulators issue recommendations related to sustainable finance

    June 5, 2019 Published: IOSCO Securities regulators from growth and emerging markets today published a report that sets forth recommendations related to the development of sustainable finance in emerging markets and the role of securities regulators in this area. IOSCO´s Growth and Emerging Market Committee (GEMC) today published the report Sustainable finance in emerging markets and

  • ASB seeks alignment of materiality definitions

    June 5, 2019 Published: Journal of Accountancy The AICPA Auditing Standards Board (ASB) is proposing changes to the definition of materiality in its standards for auditors and attestation engagements to eliminate inconsistencies with the definition used by other U.S. regulatory bodies. Currently, the ASB’s description of the concept of materiality is consistent with the definition

  • Changes in Use of Data and Technology in the Conduct of Audits

    June, 5, 2019 Published: PCAOB Advancements in technology are affecting the nature, timing, preparation, and use of financial information. Auditors are expanding their use of data analytics and emerging technology-based tools to plan and perform audits. Innovations in these technologies have the potential to improve the efficiency and effectiveness of both the audit and the

  • IOSCO examines regulatory-driven market fragmentation and considers how to enhance cross-border cooperation

    June 4, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions today published a report that examines instances of regulatory-driven fragmentation in wholesale securities and derivatives markets and considers what actions regulators can take to minimize its adverse effects. The report, titled Market Fragmentation and Cross-border Regulation, focuses on market fragmentation that arises

  • European Banking Authority’s (EBA) Annual Report updates on IFRS 9 progress

    June 3, 2019 Published: The Accountant The European Banking Authority’s (EBA), the EU regulatory agency for banks, has published its latest annual report. Included in the report is an update on the implementation of International Financial Reporting Standard (IFRS) 9, which addresses the accounting of financial instruments. In December 2018, the annual report notes the

  • Auditor Communications with Audit Committees Concerning Independence

    May 31, 2019 Published: PCAOB PCAOB Rule 3526, Communication with Audit Committees Concerning Independence provides, among other things, that a registered public accounting firm must, at least annually with respect to each of its audit clients: (1) describe in writing to the audit committee all relationships between the audit firm and the audit client that, as of the

  • IASB proposes to update Conceptual Framework reference in IFRS 3

    May 30, 2019 Published: IFRS The International Accounting Standards Board (Board) has today published for public consultation proposed narrow-scope amendments to IFRS 3 Business Combinations. The amendments would update a reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. IFRS 3 specifies how a company should account for the assets and liabilities it acquires

  • IOSCO requests feedback on key considerations for regulating crypto-asset trading platforms

    May 28, 2019 Published: IOSCO The Board of the International Organization of Securities Commissions is seeking comments on a consultation paper that describes the issues associated with crypto-asset trading platforms (CTPs) and sets forth key considerations to assist regulatory authorities in addressing these issues. The development of crypto-assets is an important area of interest for

  • Hong Kong´s FRC and Chin´s Ministry of Finance sign MoU on Cooperation of Audit Regulation

    May 28, 2019 Published: The Accountant Hong Kong’s Financial Reporting Council (FRC) and the Supervision and Evaluation Bureau (SEB) of China’s Ministry of Finance (MOF) have signed a memorandum of understanding (MoU) to promote cross-boundary cooperation. The MoU aims to enhance the quality and reliability of listed entities’ audits in order to protect the interests

  • The new trend in town? Corporate tax transparency

    May 27, 2019 Published: Accountancy Europe Our policy Manager on tax issues, Johan Barros has interviewed Lis Cunha, ActionAid’s EU Policy Officer on Tax Justice and Corporate Accountability. She speaks about the good work being done voluntarily by companies and what needs to happen at EU level for mandatory requirements on tax transparency. What do you see happening

  • GASB proposes Guidance on Cloud Computing and similar subscription-based IT Arrangements

    May 21, 2019 Published: GASB The Governmental Accounting Standards Board (GASB) has proposed new guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs), which have become increasingly prevalent among state and local governments over the past several years. The Exposure Draft, Subscription-Based Information Technology Arrangements, effectively would apply many of the provisions of Statement No.

  • Dealing with Ethical Dilemmas with Confidence

    May 21, 2019 Published: IFAC By: Erica Steenwijk, Policy Advisor, Netherlands Institute of Chartered Accountants and Stathis Gould, Deputy Director, Professional Accountants in Business, IFAC Being a professional accountant requires much more than professional competence in technical matters. The actions or inactions of accountants, whether they are working in business, advisory or audit, influence decisions and

  • PCAOB Posts Staff Guidance: A Deeper Dive on the Communication of CAMs

    May 22, 2019 Published: PCAOB The PCAOB posted to its website a staff guidance document, A Deeper Dive on the Communication of CAMs, developed to support implementation of the new critical audit matter requirements. This document was informed by discussions with auditors regarding their experiences conducting dry runs of CAMs with their audit clients, the staff’s

  • Trends in Disclosing Non-Financial Information

    May 17, 2019 Published: IFAC by Antoni Gómez, Chairman of Auren & IFAC SMP Committee Member Is financial information the most relevant information to stakeholders? Certainty not always. Companies and other organizations disclose information to a wide range of stakeholders and, for many of them, non-financial information is of more interest than financial information. Transparency is

  • Los aspectos clave de un programa de ética empresarial

    Mayo 16, 2019 Publicado por: diario_responsable España A las organizaciones empresariales ya no se las valora y evalúa únicamente por sus resultados económico-financieros. Existen otros factores, como el respeto a la legalidad vigente (fraude y corrupción), la sostenibilidad (medio ambiente) y la existencia de una cultura ética sin acosos laborales, tráfico de influencias, disparidad de

  • Cybercrime Threatens Trust in Business – How Accountants Can Help

    May 16, 2019 Published: IFAC by Sylvia Tsen, Executive Director, Knowledge, Operations and Technology, IFAC and Stathis Gould, Deputy Director, Professional Accountants in Business, IFAC Cybercrime threatens trust and transparency in business and governments on a daily basis. As a customer, taxpayer, supplier or other stakeholder, we ask ourselves whether we can trust an organization

  • 4 key steps for auditors in assessing technology risks

    May 16, 2019 Published: Journal of Accountancy Emerging technology has brought a seemingly endless set of new risks to the clients that engage CPAs to perform audits. Unauthorized personnel can wreak havoc, data can get lost or become inaccessible, and third-party providers can be unreliable. Meanwhile, avoiding all these risks by avoiding the latest technology

  • How a lease with an attest client affects independence

    May 14, 2019 Published: Journal of Accountancy By Catherine R. Allen, CPA  Suppose you audit a company that leases apartments and office space to individuals and companies. Should you be allowed to lease your apartment from your client? Should your firm be allowed to lease office space from the client? Recently, the AICPA revised its

  • GDPR one year on: its impact on auditors and accountants?

    May 13, 2019 Published: Accountancy Europe by Julia Bodnarova Keeping our personal information private is a concern for us all. It’s been one year since the EU’s General Data Protection Regulation (GDPR) required all organisations processing data to review and adapt their documents and procedures. What the GDPR means in practice has been the topic of

  • ACCA Study reveals 55% of public misunderstand audit

    May 10, 2019 Published: The Accountant A research study conducted by the Association of Chartered Certified Accountants (ACCA) has revealed that 55% of the public believe auditors could prevent company failures. In addition 34% of the respondents said they expected auditors to always detect and report any fraud and 70% believed audit should evolve to

  • SEC addresses ICFR attestation for smaller companies  

    May 9, 2019 Published: Journal of Accountancy Fewer public companies would be required to obtain an attestation of their internal control over financial reporting (ICFR) from an independent outside auditor under amendments the SEC voted to propose Thursday. The amendments as proposed are designed to reduce costs for certain lower-revenue companies by changing the types

  • Credit losses standard tips for audit committees

    May 7, 2019 Published: Journal of Accountancy FASB’s new credit losses standard presents new challenges for company financial reporting teams, especially in financial services. The new standard requires a new current expected credit loss (CECL) model and is designed to enable financial reporting of credit losses that financial institutions are expecting. A new Center for Audit

  • PCAOB Posts Staff Preview of 2018 Inspection Observations

    May 6, 2019 Published: PCAOB The PCAOB posted to its website the Staff Preview of 2018 Inspections Observations. This staff preview includes, for the first time, good practices regarding efforts to improve audit quality. It also addresses areas of common deficiencies, observations on technology, and implementation of new accounting and auditing standards and rules. The preview

  • SEC proposes changes to disclosures on acquisitions and disposals

    May 3, 2019 Published: Journal of Accountancy The SEC on Friday proposed rules changes designed to provide investors improved information about acquired and disposed businesses while reducing the cost and complexity to businesses preparing disclosures. Currently, Rule 3-05 of Regulation S-X requires SEC registrants that acquire a significant business other than a real estate operation

  • Interest Rate Benchmarks Reform prompts potential changes to IFRS

    May 3, 2019 Published: The Accountant The International Accounting Standards Board (IASB) has proposed changes to financial instruments standards IAS 39 and IFRS 9 in response to the reform of interest rate benchmarks such as interbank offer rates (IBORs). The IASB has proposed to amend IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition

  • PCAOB board member wants auditors to be more vigilant about cybersecurity

    May 2, 2019 Published: AccountingToday The Public Company Accounting Oversight Board may begin asking auditors to vouch for cybersecurity controls at the companies they audit. PCAOB board member Kathleen Hamm called recently for more auditors to get involved in performing cybersecurity risk assessments after high-profile data breaches in recent years at all too many companies.

  • SEC, PCAOB actions against accountants declined steeply in 2018

    May 01, 2019 Published: AccountingToday By: Danielle Lee The U.S. Securities and Exchange Commission and Public Company Accounting Oversight Board finalized 45 enforcement actions involving accountants in 2018, marking a significant decline from the 75 finalized actions involving accountants in 2017, according to a new Cornerstone Research report released Wednesday. According to the report, “Regulatory Actions

  • Study on EU statutory audit reform Impact on costs, concentration and competition

    Impact on costs, concentration and competition April 30, 2019 Published: Accountancy Europe On 24 April 2019, Professor Marleen Willekens presented to & discussed with the Board of Accountancy Europe as well as with the Chairs and members of working groups the findings of her team’s recent study on the early effects of the Audit Reform. The study

  • Improving Audit Quality Using an Individual Recognition and Accountability Framework

    April 29, 2019 Published: IFAC By: CPA Australia, Chartered Accountants ANZ About this guide This guide has been developed by CPA Australia on behalf of the Australian Auditing and Accounting Public Policy Committee (APPC), which comprises representatives of BDO, Deloitte, EY, Grant Thornton, KPMG, PwC, Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia

  • FASB makes minor adjustments to financial instruments rules

    April 25, 2019 Published: Journal of Accountancy FASB issued clarifications and minor improvements Thursday to its recently issued accounting standards for credit losses, hedging, and recognition and measurement. The numerous amendments are included in Accounting Standards Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825,

  • Voices: 3 ways accountants can implement AI today

    April 24, 2019 Published: Accounting Today By: Hendrik Vordenbauenmen Artificial intelligence is poised to transform the finance and accounting industries with advancements that eliminate tedious tasks and free up time for financial staff to prioritize higher impact responsibilities. Yet a majority of businesses (80 percent) still haven’t employed AI in their workforce due to uncertainties around the

  • Lease Accounting: Getting ready for a new approach

    April 18, 2019 Published: The Accountant It is all go in the financial reporting world. With three key new IFRS standards taking effect in 2018/2019, companies need to get in shape to embrace the changes and provide stakeholders with the key information and explanations needed to understand the – sometimes huge – impact they will

  • China needs further reforms to make growth sustainable, greener and more inclusive

    April 16, 2019 Published: OECD The Chinese economy continues to slow as it rebalances, with headwinds including trade frictions and the weakening global economy undermining exports and creating new uncertainties. Policy should focus on long-term strategies to move the economy towards greater domestic consumption and services, enhancing economic efficiency and ensuring that future growth is

  • From Algorithms to Deep Learning, What You Need to Know About AI

    April 12, 2019 Published: IFAC By: Yasmine Hakimpour, CPA, CA, Principal, Audit & Assurance, Research, Guidance & Support Group, CPA Canada Artificial Intelligence (AI) is everywhere, and news articles and broadcasts, blog posts and podcasts constantly remind us how AI is “upgrading” just about everything. But what exactly is AI?  CPA Canada in collaboration with the American Institute

  • U.K. regulators recommend shake-up in audit market

    April 18, 2019 Published: AccountingToday The United Kingdom’s Competition and Markets Authority has released the final version of a long-awaited report on changes in the audit market, recommending separation of audit from consulting services, mandatory “joint audits” to enable firms outside the Big Four to develop the capacity needed to review the U.K.’s largest companies, and the

  • Yellow Book revisions update independence guidance

    April 17, 2019 Published: Journal of Accountancy By Catherine R. Allen, CPA, and Nancy Miller, CPA Auditors performing engagements under generally accepted government auditing standards (GAGAS) are subject to new rules reinforcing the principles of transparency and accountability under revisions published by the U.S. Government Accountability Office (GAO) in July 2018. The revised standards (also

  • Technology and the Profession–A Guide to ICAEW’s Work

    April 15, 2019 Published: IFAC By: David Lyford-Smith Since the 1990s, ICAEW has had an IT Faculty – a group of technology and accounting experts who are the “Voice of IT for ICAEW”.  The group helps produce guidance and thought leadership relating to the place of technology in the accountancy profession, researches the effects of

  • The GDPR’s transparency obligations are difficult but not impossible

    April 11, 2019 Published: ICAEW The EU GDPR is one the most significant changes in privacy in the past two decades, and companies need to fully understand its implications according to ICAEW. In its new guide, Data Protection and Transparency, ICAEW explains the transparency principle of the GDPR and gives essential guidance on how to comply

  • Ways to keep your talented CPAs

    April 8, 2019 Published: Journal of Accountancy By: Sarah Ovaska-Few Flexible scheduling can ward off burnout and help retain staff. Holding on to good people is a challenge, especially in the accounting profession, where the demand for skilled CPAs is high. To help with that, many firms have policies on the books allowing employees to

  • Voices: A revolution for accounting firms who are ready for change

    April 10 2019 Published: AccountingToday   There is a revolution underway in major accounting firms, at least for the ones who take up the challenge to meet the shifts occurring beneath their feet. For decades, the profession has operated on a foundation of expanding billable hours for increasingly complex yet still largely compliance-focused work. And

  • Global Ethics Board Sets Out Top Priorities, Publishes Ambitious 5-Year Strategy & Work Plan

    April 9, 2019 Published: IFAC- IESBA The International Ethics Standards Board for Accountants (IESBA) today released its Strategy and Work Plan, 2019-2023. Titled Elevating Ethics in a Dynamic and Uncertain World, the publication describes the board’s strategy and priorities toward the setting of high-quality, future-ready ethics standards for professional accountants that are widely adopted around the world. Building

  • Artificial intelligence

    April 8, 2019 Published: European Commission Commission takes forward its work on ethics guidelines The Commission presented today next steps for building trust in artificial intelligence by taking forward the work of the High-Level Expert Group. Building on the work of the group of independent experts appointed in June 2018, the Commission launched a pilot phase to

  • New Tone at the Top Highlights Ways Board Members Can Help Deliver All Pertinent Risk Information to the Board

    April 5, 2019 Published: The Institute of Internal Auditors When management is prepared to provide whatever information is requested, board effectiveness will improve and shareholders will benefit in the long run. According to recent surveys, a majority of directors indicate that the quality of management reporting to the board needs to improve, suggesting that boards

  • Lease accounting tips for public and private companies

    April 4, 2019 Published: Journal of Accountancy By Ken Tysiac Many public companies are not finished implementing FASB’s new lease accounting standard, and one-third of private companies say they are unprepared to comply with the new standard, according to a new survey. After filing earnings reports for the first quarter of 2019, 25% of public