PCAOB Seeks Feedback on Draft Strategic Plan
For the first time ever, the Public Company Accounting Oversight Board (“PCAOB”) is seeking public comments on the draft version of its strategic plan. The draft of Strategic Plan: 2018-2022 outlines the PCAOB’s long-term objectives for improving audit quality and the board’s efforts to improve its communication to financial markets and the accounting field. The PCAOB’s draft plan includes providing accounting firms more timely responses following inspections and giving quick feedback to auditing profession and financial reporting changes. Additionally, the audit regulator wants its enforcement efforts to focus on issues that are of greater risk to investors and will discourage. Read More.
Arrival of PCAOB Guidance on Credit Loss Model Unknown
The Public Company Accounting Oversight Board’s (“PCAOB”) interpretive guidance for the Financial Accounting Standards Board’s (“FASB”) new current expected credit losses (“CECL”) model is unlikely to be published before the audit regulator’s proposal on auditing accounting estimates is finalized. Release No. 2017-002, Proposed Auditing Standard—Auditing Accounting Estimates, Including Fair Value Measurements, was issued by the PCAOB to enhance the requirements for auditors examining hard-to-value assets and liabilities such as oil company reserves. Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, is effective in 2020, and will require companies,. 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.
New PCAOB Members to Meet with Standing Advisory Group
Today in Washington, D.C., the Public Company Accounting Oversight Board’s (“PCAOB”) five new members are holding their first meeting with the board’s Standing Advisory Group (“SAG”). The meeting will give Robert Brown, William Duhnke, Kathleen Hamm, James Kaiser and Duane Desparte an opportunity to update SAG members on the PCAOB’s standard-setting activities and hear the advisory panel’s thoughts on emerging issues that may impact an auditor’s work. The two-day meeting will also feature a presentation on audit firms’ implementation of Release No. 2017-001, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion and Related Amendments to PCAOB Standards. Issued last year, the rule. Read More.
PCAOB Chief Auditor Steps Down
After 12 years with the Public Company Accounting Oversight Board (“PCAOB”), chief auditor Martin Baumann has announced that he will leave the board on May 31. Baumann’s departure follows recent announcements made by senior officials Helen Munter and Gordon Seymour, who also plan to leave the PCAOB at the end of this month. Previously executive vice president of finance and chief financial officer of Freddie Mac, Baumann joined the board in 2006. He later became the director of the Office of Research and Analysis and was appointed chief auditor in 2009. As the chief auditor, Baumann pushed to make the audit. Read More.
PCAOB Considers New Approach to Agenda-Setting
Public Company Accounting Oversight Board (“PCAOB”) chairman William Duhnke plans to take the organization’s approach to setting its long-term agenda in a new direction. Breaking from his predecessors’ leadership, Duhnke wants to establish a set of benchmarks that will help the PCAOB set its agenda and evaluate the progress made in achieving its mission. The new direction includes conducting a complete assessment of the PCAOB’s operations. In particular, Duhnke wants the PCAOB’s programs to receive a fresh look and a possible update to their operations. He said the revamped operations should reflect today’s financial markets and the audit profession, not. Read More.