• SEC Adopts Rules to Modernize Key Market Infrastructure Responsible for Collecting, Consolidating, and Disseminating Equity Market Data

    December 9, 2020 Published: SEC Fosters a competitive environment for core components of the national market system for the first time The Securities and Exchange Commission today adopted rules to modernize the infrastructure for the collection, consolidation, and dissemination of market data for exchange-listed national market system stocks (“NMS market data”).  This infrastructure has not

  • FRC announces its thematic reviews, audit areas of focus and priority sectors for 2021/22

    December 10, 2020 Published: FRC The Financial Reporting Council (FRC) has today announced its corporate reporting and audit quality review programme for 2021/22 alongside its priority sectors for review.    The FRC’s Corporate Reporting Review team will supplement its routine reviews of corporate reporting with five thematic reviews. These reviews will identify scope for improvement, as

  • Tips for auditing in a COVID-19 environment

    December 9, 2020 Published: Journal of Accountancy December 9, 2020 Published: Journal of Accountancy Operational changes, remote procedures, and new risks associated with the coronavirus pandemic have made the audit environment much different than it was in the days before COVID-19. George Botic, director of the PCAOB’s Division of Registrations and Inspections, provided observations on

  • Why the best critical audit matter disclosures use entity-specific info

    December 8, 2020 Published: Journal of Accountancy Auditors should look at critical audit matters as an important opportunity to communicate and show the value they add to the financial reporting process, PCAOB member J. Robert Brown said Monday at the AICPA Conference on Current SEC and PCAOB Developments. Auditors began communicating critical audit matters (also

  • The Need for Increased Transparency and Accountability in the PCAOB’s Remediation Process

    Date. December 7, 2020 Published: PCAOB Speaker: J. Robert Brown Jr., Board Member Event: AICPA Conference on Current SEC and PCAOB Developments On December 7, 2020, I, along with my fellow Board members, spoke on a panel at the AICPA Conference on Current SEC and PCAOB Developments. In response to a question, I addressed the

  • Auditing fraud risk during a pandemic

    December 2, 2020 Published: Journal of Accountancy By Deana Thorps, CPA, and Tracy Harding, CPA The coronavirus pandemic has taught us all to be on high alert during a time of uncertainty. The key to managing this uncertainty is adaptability. All entities have been affected by the pandemic in some way, whether it’s changes in

  • CDSB calls for regulatory change following review of European corporate environmental disclosures

    December 7, 2020 Published: CDSB The third consecutive review of environmental and climate-related disclosures in Europe shows signs of improvement, but the information remains insufficient for investment decision-making. 11 December, 2020 – Latest report released by the Climate Disclosure Standards Board “The state of EU environmental disclosures in 2020” analysed the strength and weaknesses of disclosure among

  • Practitioners provide new transparency through critical audit matters

    December 3, 2020 Published: Journal of Accountancy Auditors’ reports on public company financial statements are providing users with a better understanding of company financial information as a result of newly required reporting on critical audit matters, according to a new report by the Center for Audit Quality (CAQ). The CAQ, which is affiliated with the AICPA, found

  • Consolidated covid-19 guidance for companies and auditors

    December 4, 2020 Published: FRC The FRC has today published consolidated covid-19 guidance for companies and auditors. The consolidated guidance supersedes all previous FRC guidance for companies and auditors. A link to the consolidated Covid-19 guidance for auditors can be found here.A link to the consolidated Covid-19 guidance for companies can be found here. The updated Bulletin for auditors

  • New report highlights digital transformation during COVID-19 and beyond

    December 2, 2020 Published: Journal of Accountancy By Anita Dennis Just as CPAs have turned to digital solutions to help their firms and clients navigate COVID-19, accountants and finance professionals across the United States and around the world also are exploring technology options to help companies revamp their businesses and reengineer the way they run

  • IASB plans possible new M&A standards

    November 30, 2020 Published: Accounting Today The International Accounting Standards Board began a consultation process Monday in preparation for possible changes in the accounting standards for mergers and acquisitions involving companies within the same group, or in other words, business combinations under common control. A current International Financial Reporting Standard, IFRS 3, Business Combinations, already

  • Consultation on revised review standard (ISRE (UK) 2410) for interim financial statements

    November 27, 2020 Published: FRC The Financial Reporting Council (FRC) has launched a consultation on the proposed revision of its review standard for interim financial statements, International Standard for Review Engagement (UK) 2410 (ISRE (UK) 2410) Review of Interim Financial Information Performed by the Independent Auditor of the Entity. The FRC has recently reviewed ISRE (UK) 2410 in

  • IASB proposes amendment to its leases Standard to improve accounting for sale and leaseback transactions

    November 27, 2020 Published: IFRS The International Accounting Standards Board has today proposed to amend IFRS 16 Leases by specifying how a company measures the lease liability in a sale and leaseback transaction. Sale and leaseback transactions are transactions for which a company sells an asset and leases that same asset back from the new owner. IFRS

  • 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

  • FRC statement in response to the Asset Management Taskforce report

    November 24, 2020 Published: FRC The FRC commends all the organisations that worked together to develop the recommendations of the Asset Management Taskforce’s Investing with Purpose report. We welcome the report’s endorsement of the UK Stewardship Code as the best in class marker of effective stewardship and the recommendations that encourage investors and those that support them

  • Audit firms enhance going concern assessments

    November 24, 2020 Published: FRC Audit firms have implemented additional measures to enhance their evaluation of companies’ going concern assessments, since the start of the Covid-19 pandemic, according to a review of completed audits by the Financial Reporting Council (FRC). The FRC reviewed a sample of eleven audits of the going concern assessments performed by the seven largest

  • IOSCO Annual Meeting addresses the impact of COVID 19 and other critical matters on securities markets

    November 23, 2020 Published: IOSCO Members of the International Organization of Securities Commissions (IOSCO) gathered online for the organization´s 45th Annual Meeting last week to discuss the impact of COVID 19 on capital markets and other priority issues facing securities market regulators and supervisors today. Some 480 members from 159 jurisdictions participated in the event.

  • SEC Adopts Amendments to Modernize and Enhance Management’s Discussion and Analysis and other Financial Disclosures

    November 19, 2020 Published: SEC The Securities and Exchange Commission today announced that it has voted to adopt amendments that will modernize, simplify and enhance certain financial disclosure requirements in Regulation S-K. The amendments are intended to enhance the focus of financial disclosures on material information for the benefit of investors, while simplifying compliance efforts

  • PCAOB amends independence requirements to align with SEC changes

    November 19, 2020 Published: Journal of Accountancy The PCAOB adopted amendments Thursday to align its independence requirements with recently updated SEC rules. Last month the SEC amended its rules in an effort to prevent the triggering of auditor independence rules violations in situations that don’t necessarily impair auditor judgments. The amendments were designed to prevent unnecessary red flags that

  • How to apply COSO’s ERM framework to compliance risk management

    November 18, 2020 Published: Journal of Accountancy The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has published new guidance on how to apply the COSO enterprise risk management framework to effectively manage and mitigate compliance risks. Compliance Risk Management: Applying the COSO ERM Framework describes the characteristics of compliance and ethics programs associated with each of

  • Preparation of cash flow statements needs to improve

    November 17, 2020 Published: FRC The Financial Reporting Council (FRC) has today published a review of corporate reporting in relation to IAS 7 ‘Cash flow statement’ and the liquidity disclosure requirements in IFRS 7 ‘Financial Instruments: Disclosures’. The FRC continues to identify errors in cash flow statements and this review examines many of the issues faced in their

  • COVID-19 crisis threatens Sustainable Development Goals financing

    November, 10 2020   Published: OECD According to the OECD’s latest Global Outlook on Financing for Sustainable Development, developing countries are facing a shortfall of USD 1.7 trillion in the financing they would need this year to keep them on track for the 2030 Sustainable Development Goals (SDGs), as governments and investors grapple with the health,

  • FRC announces company reporting expectations for 2020/21

    November 12, 2020 Published: FRC The Financial Reporting Council (FRC) has today published its annual end of year letter to CEOs, CFOs and Audit Committee Chairs setting out its reporting expectations for preparers of reports and accounts for the year ahead. This year’s letter is of particular significance given the continuing backdrop of economic uncertainty and the impact

  • 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