• 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

  • Financial Regulators welcome UK Government´s Green Finance Strategy

    July 2, 2019 Published: International Accounting Bulletin The Financial Reporting Council (FRC) has issued a joint statement with other financial regulators, including the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA) and the Pensions Regulator (TPR) in response to the UK government’s Green Finance Strategy. The statement notes that the boards of UK companies have

  • Financial / Non- Financial Reporting Frameworks share common principles

    July 2, 2019 Published: The Accountant The world’s leading financial and non-financial corporate reporting frameworks have the same common foundations, based on the key objectives of transparency and accountability, according to a position paper published by the framework providers. The position paper sets out the seven key principles report preparers should follow for achieving such

  • Get private companies ready for the new revenue standar

    June 27, 2019 Published: Journal of Accountancy Auditors of private companies are reviewing clients’ efforts to prepare for filing financial statements under the new revenue recognition standard in early 2020. In the five years since FASB adopted its landmark guidance in Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), companies large and

  • IASB consults on amendments to aid implementation of IFRS 17

    June 26, 2019 Published: IFRS The International Accounting Standards Board (Board) has today proposed amendments to the insurance contracts Standard, IFRS 17, for public consultation. The aim of the amendments is to continue supporting implementation by reducing the costs of implementing the Standard and making it easier for companies to explain their results when they

  • The Global Accountancy Profession’s Call to Action for G20 Leaders

    Jun 20, 2019 Published: IFAC Counting on Society 5.0 At a time of economic and political uncertainty, IFAC’s recommendations focus on actions that will strengthen the economy, ensure progress toward the Sustainable Development Goals, and create a fair and empowered digital economy. G20 countries play a crucial role in fostering institutions and governance models that can anticipate,

  • Companies starting to use AI technology to fight fraud

    June 24 2019 Published: Accounting Today Companies are beginning to employ advanced technologies such as artificial intelligence and machine learning to uncover fraud, according to a new report. The report, from the Association of Certified Fraud Examiners and analytical technology provider SAS, found that 13 percent of organizations currently use AI or machine learning to

  • Better business decisions with assurance on non-financial information

    Junio 20, 2019 Published: Accountancy Europe 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.

  • Audit evidence standard would be updated under proposal

    June 20, 2019 Published: Journal of Accountancy Issues such as the use of emerging technologies and the application of professional skepticism are addressed in a new audit evidence standard proposed Thursday by the AICPA Auditing Standards Board (ASB). Proposed Statement on Auditing Standards (SAS), Audit Evidence, addresses the evolving nature of business and audit services as well as

  • European Commission publishes Climate-Related Guidelines

    June 20, 2019 Published: International Accounting Bulletin The European Commission has published new guidelines on corporate climate-related information reporting, as part of its Sustainable Finance Action Plan. The guidelines will provide companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact

  • Convergence with international standards sought for SSARSs (Statements on Standards for Accounting and Review Services)

    June 19, 2019 Published: Journal of Accountancy In an effort to promote convergence with international standards, the AICPA Accounting and Review Services Committee (ARSC) on Wednesday proposed changes to standards for review services. ARSC believes that it is important for the Statements on Standards for Accounting and Review Services (SSARSs) to be as closely converged

  • SEC Adopts Amendments to Improve the Application of the Auditor Independence Rules to Loan Provision

    June 18, 2019 Published: SEC The Securities and Exchange Commission adopted amendments to the auditor independence rules relating to the analysis that must be conducted to determine whether an auditor is independent when the auditor has a lending relationship with certain shareholders of an audit client.  The Commission has become aware of circumstances where the

  • 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.