IESBA Releases Exposure Draft to Improve Independence Standard
Addressing stakeholder concerns about independence and ensuring threats caused by the long association of audit firm personnel with an audit client receive attention on audit engagements, the International Ethics Standards Board for Accountants (“IESBA”) has released Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client. Issued as an exposure draft for public comment, the IESBA’s proposal focuses on threats associated with familiarity and self-interest, which could occur from a long association with the audit client and fears of losing the client. Changes proposed to the Code of Ethics for Professional Accountants consist. Read More.
Staff Consultation Paper Issued by PCAOB’s Chief Auditor Office
Pursuing feedback on auditing accounting estimates and fair value measurements, the Public Company Accounting Oversight Board’s (“PCAOB”) Office of the Chief Auditor (“the Office”) has released a Staff Consultation Paper (the Paper) for public comment. As part of its efforts to find audit deficiencies throughout various firms, the Office issued the Paper for comments on current audit practices, examining the possible need for PCAOB standards changes, and likely alternative actions associated with auditing accounting estimates and fair value measurements. For the news release on the Paper , visit the PCAOB website. Also, don’t forget to check out our Audit & Attest page for information on Cherry Bekaert’s services.
PCAOB Looking to Move Forward with Audit Participant Disclosure Standard
As part of a major initiative to help investors receive more information about auditors and their work for public companies, the Public Company Accounting Oversight Board (“PCAOB”) is looking to adopt rules based on the proposed Release No. 2013-009, Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits. Hoping to issue the new rules soon, the proposed requirement of disclosing the lead partner on an auditor’s report has received the most attention. However, several financial professionals argue that investors may favor details regarding other audit participants. Under Release No. 2013-009, the names of outside firms and. Read More.
FASB Releases 2014 & 2015 UGT Implementation Guides
The Financial Accounting Standards Board (“FASB”) has issued the Final 2014 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Insurance Industry: Concentration of Credit Risk Disclosures . Following the 2014 U.S. GAAP Financial Reporting Taxonomy, the guide offers examples to assist UGT users understand the reinsurance-related concentrations of credit risk disclosures. In addition, FASB has issued a Proposed 2015 UGT Implementation Guide, U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation Guide, Disposal Groups and Discontinued Operations . The proposed guide features examples of how users should model disclosures disposal groups and discontinued operations, and follows the 2015 U.S. GAAP Financial Reporting Taxonomy draft. Comments on the proposal are being accepted in writing and electronically until October 6th. Not viewed as authoritative, the guides are considered as documents that explain how the UGT. Read More.
Higgins Highlights Corp Fin Initiatives in Congress Testimony
Promoting his division’s current initiatives and directives, the U.S. Securities and Exchange Commission’s (“SEC”) Corp Fin (“the Division”) Director Keith Higgins testified recently in front of the U.S. House of Representatives Committee on Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises. Some of the notables from Higgins’ testimony included: Review of Registrant Filings: Higgins stated that Corp Fin is dedicated to the financial statements and disclosures of the companies that make up 98 percent of total market capitalization. Based on the work completed thus far in fiscal 2014, Higgins believes the Division’s review of 4,500 reporting companies will be in. Read More.
Topics: Audit, Capital Markets, Division of Corporation Finance "Corp Fin", Financial Accounting Standards Board "FASB", financial services, Government Sponsored Enterprises, Keith Higgins, U.S. House of Representatives, U.S. Securities and Exchange Commission "SEC"
Chamber of Commerce Seeks Additional Information on PCAOB’s Related Parties Standard
Citing lack of analysis in the Public Company Accounting Oversight Board’s (“PCAOB”) related parties standard concerning the financial impact on emerging growth companies and their auditors, the U.S. Chamber of Commerce (“the Chamber”) has asked the U.S. Securities and Exchange Commission (“SEC”) to send Release No. 2014-002, Auditing Standard (AS) No. 18—Related Parties, back to the PCAOB for additional details. In a comment letter to the SEC on July 28th, the Chamber’s sentiments reflect their belief that the PCAOB hasn’t been thorough in assessing the standard’s costs on emerging growth companies. Issued in June and awaiting SEC approval, AS 18. Read More.