Proposed Standard on Audit Partner Disclosure May be Released This Year
Facing opposition from audit firms and lobbying organizations, the Public Company Accounting Oversight Board (“PCAOB”) continues its work on a proposal requiring the client audit’s lead partner to be publicly identified. The proposal, based on Release No. 2013-009, Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits, is considered beneficial by informing investors the name of the partner who completes the audit when they approve a company’s auditor choice during proxy season. From an investor’s standpoint, the public disclosure increases accountability, encourages auditors to be more careful with their auditing process and lowers the possibility of. Read More.
SEC Orders Start of Tick Size Program for Stock Exchanges
Answering feedback from various small companies, brokerage firms and venture capitalists, the U.S. Securities and Exchange Commission (“SEC”) has ordered stock exchanges and the Financial Industry Regulatory Authority (“FINRA”) to start a pilot program for trading stocks from 900 small businesses. Announced in Release No. 34-72460, Order Directing the Exchanges and the Financial Industry Regulatory Authority to Submit a Tick Size Pilot Plan, the test is in response to requests for higher stock price increments. Supporters say increased stock price increments would boost trading volume and investor interest in small cap stocks. Hoping to run the program for a year, the. Read More.
Revised Proposal to Focus on Auditor Reporting Changes
The Public Company Accounting Oversight Board’s (“PCAOB”; “the Board”) staff is working on a revised proposal that reflects changes to the auditor’s reporting model. Based on Release No. 2013-005, Proposed Auditing Standards on the Auditor’s Report and The Auditor’s Responsibilities Regarding Other Information and Related Amendments, the updated proposal will make available additional information on audit reports for investors. Despite investors praising the change, public organizations and accounting firms believe the new disclosure requirement will expose private company matters that should be kept confidential. In their opinion, management should be accountable for divulging such information, not auditors. Over the past few. Read More.
Join Us for a Fair Value Exposure Draft Podcast and Share your Feedback
At Cherry Bekaert we work hard to serve as thought leaders, keeping you informed of discussions, standards and changes that impact you and your operations. As such we are pleased to present a podcast focusing on the Fair Value Measurement and Application exposure draft. As you may be aware, the Governmental Accounting Standards Board (“GASB”) has issued an exposure draft addressing fair value measurement accounting and financial reporting matters. Entitled Fair Value Measurement and Application, the exposure draft explains how to define the fair value, assets and liabilities to be measured, and what information regarding fair value should be disclosed in. Read More.
Corp Fin to Review Disclosure Rules & Cybersecurity Protection in Fiscal 2015
Outlining next year’s policy objectives, Report on Objectives – Office of the Investor Advocate has been released by the U.S. Securities and Exchange Commission’s (“SEC”) Office of the Investor Advocate (“the Office”). Published on June 24th, the report details two major projects the Office will work on during fiscal year 2015. The projects include assisting the SEC’s Division of Corporation Finance (“Corp Fin”) revise disclosure requirements and reviewing cybersecurity for investor protection. Mandated by the JOBS Act, the SEC’s Mary Jo White considers the review of disclosure requirements in Regulation S-K a high priority. Using recommendations from the Report on. Read More.
Topics: Compliance, Cybersecurity, disclosure, Division of Corporation Finance "Corp Fin", Financial Industry Regulatory Authority "FINRA", Investor Protection, JOBS Act, Mary Jo White, Office of the Investor Advocate, Regulation S-K, U.S. Securities and Exchange Commission "SEC"
SEC & PCAOB Discuss Audit Committee Disclosures
Uncertain how to complete its audit report requirement of disclosing an audit firm’s lead partner on a client engagement, the Public Company Accounting Oversight Board’s (“PCAOB”; “the Board”) project may no longer be needed if the U.S. Securities and Exchange Commission (“SEC”; “the Commission”) decides to make it a requirement to disclose the name in the proxy statement. Investors continue to support the requirement for the lead partner to sign their name on the audit report as established in PCAOB’s Concept Release No. 2009-005, Requiring the Engagement Partner to Sign the Audit Report. Many believe the lead partner’s signature influence. Read More.