New CAQ Tool to Help with Cybersecurity Risk Management Oversight
The Center for Audit Quality (“CAQ”) has developed a new tool to help board members oversee enterprise-wide cybersecurity risk management. Cybersecurity Risk Management Oversight: A Tool for Board Members lists questions board members can ask meeting with management and CPA firms about cybersecurity risks and disclosures. Such questions are divided into the following areas: Understanding how the financial statement auditor considers cybersecurity risk. Understanding the role of management and responsibilities of the financial statement auditor related to cybersecurity disclosures. Understanding management’s approach to cybersecurity risk management. Understanding how CPA firms can assist boards of directors in their oversight of cybersecurity risk management. The tool also collects cybersecurity-related resources from. Read More.
AICPA Issues Technical Guidance for IRS Audits of Partnerships
A recent Technical Question & Answer (“TQA”) document from the American Institute of Certified Public Accountants provides guidance on complying with the Internal Revenue Service’s (“IRS”) new approach to auditing partnerships for income taxes. TQA 7200.09, Partnerships Tax Accounting Considerations Under Partnership Audit Regime , clarifies whether a previous year’s underpayment signifies an income tax liability of the partnership or the individual partners. Per the guidance, Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes FASB ASC 740-10-55-226, Income Taxes — Overall — Implementation Guidance and Illustrations — Attribution of Income Taxes to the Entity or Its Owners, through FASB ASC 740-10-55-229, Financial Statements of a Group. Read More.
PCAOB Standard-Setting Update as of March 31, 2018
Available on the Public Company Accounting Oversight Board’s (“PCAOB”) website is the organization’s most recent standard-setting agenda. Updated as of March 31, the standard-setting agenda features the statuses of the following current PCAOB projects: Auditing Accounting Estimates, Including Fair Value Measurements: Developing a recommendation for action. The Auditor’s Use of the Work of Specialists: Developing a recommendation for action. Supervision of Audits Involving Other Auditors: Reviewing comments and deciding the next steps. Going concern: Outreach, monitoring, and research. The PCAOB also has projects on its research agenda related to: Quality control standards; Changes in how data and technology in audits. Read More.
Government Watchdog Says SEC’s Climate Change Disclosure Rules are Clear
After a comprehensive review, the Securities and Exchange Commission’s (“SEC”) documents related to its climate change disclosure requirements have received the Government Accountability Office’s (“GAO”) approval. In a March 22 report, the government watchdog group said that the SEC’s disclosure requirements concerning climate-related risks under Release No. 33-9106, Commission Guidance Regarding Disclosure Related to Climate Change, are clear and do not need additional guidance. Release No. 33-9106 requires companies to disclose to investors the climate change risks they face, such as lawsuits or regulatory supervision. Effects caused by climate change could potentially impact a public company’s operations and financial stability.. Read More.
New Tool to Help with Implementing FASB Leases Standard
The Center for Audit Quality (“CAQ”) has designed a tool to support audit committees in their implementation of Accounting Standard Codification Topic 842, Leases, by the Financial Accounting Standards Board (“FASB”). Preparing for the Leases Accounting Standard: A Tool for Audit Committees includes a synopsis of Topic 842 and the standard’s requirements. The new tool also lists which questions audit committee members should consider for a successful application. Topic 842, Leases, will be effective in January 2019. A recent poll, however, found that only 21 percent of professionals say their organizations are either “extremely” or “very” prepared to implement the new leases standard.
Cathie Stanton Hears Supreme Court Case on Sales & Use Tax
Today, April 17, the Supreme Court of the U.S. heard oral arguments for a landmark sales and use tax case, South Dakota v. Wayfair, Inc. et al. What did each side say, and how persuaded did the justices seem? What was the discussion surrounding the burden on businesses of collecting sales tax across multiple jurisdictions? Get the initial impressions of Cathie Stanton, National Leader of State and Local Tax Services at Cherry Bekaert, who was in the courtroom for the arguments and shared this video from outside the Supreme Court building in Washington, D.C.