SEC Proposes Rolling Back the Volcker Rule
Weeks after President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act , a bill to roll back systemic risk regulations under the Dodd-Frank Act, the Securities and Exchange Commission (“SEC”) is taking aim at reversing another Dodd-Frank rule. In a 3-2 vote on June 5, the SEC issued a proposal to amend the Dodd-Frank Act’s Volcker Rule, which limits banks’ proprietary trading and prohibits them from owning hedge funds and private equity funds. The proposal would create new requirements centered on a bank’s trading activities, with an aim to alleviate the burden small- and mid-sized companies face in complying with the Volcker rule. It would also revise the exemptions. Read More.
PCAOB Members Say Standard-Setting Projects to be Completed
The new Public Company Accounting Oversight Board (“PCAOB”) members say it is probable that some of the projects on the previous board’s standard-setting agenda will be finished. At this week’s meeting with the Standing Advisory Group, PCAOB chairman William Duhnke said that board members are currently reviewing its agenda and working to ensure that existing projects will remain intact. Duhnke noted that before moving forward, however, the PCAOB needs to complete an evaluation of its standard-setting agenda and discuss which projects will receive priority. Significant work has already been completed on three standard-setting projects. Last June, the PCAOB issued Release No. 2017-002, Proposed Auditing Standard—Auditing Accounting Estimates, Including Fair Value Measurements and Proposed Amendments to PCAOB. Read More.
CAQ Issues Audit Planning Alert
The Center for Audit Quality (“CAQ”) has issued an alert to improve audit quality and assist in the planning of 2018 audits. Released as Audit Planning Alert for Auditors of Brokers and Dealers , the alert outlines questions auditors of brokers and dealers should consider when preparing audit and attestation engagements. It also focuses on the following areas: Auditing revenue; Auditing related party transactions; Auditing the supplemental information; Performing examination engagements; and Performing review engagements. While certain areas are highlighted in this alert, the CAQ cautions that the guidance should not be considered definitive or all-inclusive. The CAQ advises that the alert must be read alongside the appropriate rules,. Read More.
Senate Committee Aide Nominated to Open SEC Seat
Last week, President Trump announced that he would nominate Senate Banking Committee aide Elad Roisman to the open seat on the Securities and Exchange Commission (“SEC”). Currently the chief counsel to Senate Banking Committee chairman Mike Crapo, Roisman was counsel to Daniel Gallagher from 2012-2014 when Gallagher was an SEC commissioner. Crapo stated that Roisman would be a valuable asset to the agency. The seat on the SEC became vacant when commissioner Michael Piwowar announced he would leave the agency when his term ends this month. Piwowar, however, did say he is open to staying until the Senate confirms his. Read More.
Cherry Bekaert Responds to AICPA’s Proposed Amendments to Audit Reporting
In a comment letter last month to the American Institute of Certified Public Accountants (“AICPA”), Cherry Bekaert (“the Firm”) Partner David Bettler, CPA , affirms the Firm Partners’ support of the AICPA Auditing Standards Board’s Proposed Statements on Auditing Standards, Auditor Reporting and Proposed Amendments―Addressing Disclosures in the Audit of Financial Statements . Bettler states that the proposed standards and amendments will be useful to financial statement users, as well as improve transparency and the quality of audits. The two-page letter also features the Partners’ responses to the exposure draft questions considered by the Auditing Standards Board. Read David Bettler’s comment letter on AICPA.org.
Cherry Bekaert Responds to GASB Invitation to Comment on Revenue and Expense Recognition
On behalf of Cherry Bekaert Partners, David Bettler, CPA, responded to the Governmental Accounting Standards Board’s (“GASB”) Invitation to Comment, Revenue and Expense Recognition . The comment letter includes the Partners’ answers to the Invitation to Comment questions, such as whether or not the Partners believe the performance obligation/no performance obligation model would be appropriate for classifying transactions and recognizing revenue and expense. Bettler’s comment letter is available on GASB.org.