SEC Approves 2018 PCAOB Budget and Accounting Support Fee
In its recently issued order, the Securities and Exchange Commission (“SEC”) approved the Public Company Accounting Oversight Board’s (“PCAOB”) budget and annual accounting support fee for 2018. This year’s PCAOB budget is approximately $259.9 million, which is a 3.2 percent (or $8.6 million) drop from the 2017 budget. The PCAOB approved its 2018 fiscal-year budget in November. The order states that due to budget control requirements, the PCAOB budgeted expenses requires a slight reduction.
William Duhnke Sworn in as PCAOB Chairman
Longtime Republican staffer William Duhnke was sworn in last week as chairman of the Public Company Accounting Oversight Board (“PCAOB”). Replacing Chairman James Doty, Duhnke previously served as an aide to Alabama Senator Richard Shelby and was the staff director and general counsel for the Senate Committee on Rules and Administration. In his first act as chairman, Duhnke appointed Francis Dymond as the PCAOB’s chief of staff. At the same event, former Treasury Department counselor Kathleen Hamm was sworn in as chair to the PCAOB. Duhnke and Hamm were appointed as new PCAOB members in December by the Securities and Exchange Commission. The remaining newly elected members, Robert Brown, Duane DesParte and James Kaiser, will be sworn. Read More.
PCAOB Standard-Setting Update as of December 31, 2017
The following reflects the Public Company Accounting Oversight Board’s (“PCAOB”) updated standard-setting agenda as of December 31, 2017: Auditing Accounting Estimates, Including Fair Value Measurements: Considering a recommendation for the next PCAOB action. The Auditor’s Use of the Work of Specialists: Considering a recommendation for the next PCAOB action. Supervision of Audits Involving Other Auditors: Reviewing comments on the supplemental request for comments and planning the next steps. Going concern: Covering outreach, monitoring, and research efforts. Along with the release of its revised standard-setting agenda, the PCAOB has added four projects to its research agenda. The projects involve quality control standards, changes in the use of data and technology in audits, the auditor’s role. Read More.
SEC Appoints New Members to PCAOB
The Public Company Accounting Oversight Board (“PCAOB”) will soon receive five new members. Announced by the Securities and Exchange Commission (“SEC”) on December 12, the new members are as follows: Robert Brown: A law professor at the University of Denver, Brown previously served on the PCAOB’s Standing Advisory Group and the SEC’s Investor Advisory Committee. William Duhnke: The staff director and general counsel to the Senate Committee on Rules and Administration, Duhnke was a Republican staffer in the Senate Banking Committee. Kathleen Hamm: The Global Leader in Securities and Fintech Solutions at Promontory Financial Group, Hamm has prior experience with. Read More.
Staff Guidance Published for Implementing Auditor’s Report Changes
New staff guidance by the Public Company Accounting Oversight Board (“PCAOB”) details updates to the auditor’s report that will be effective for audits during fiscal years ending on or after December 15, 2017. Released on December 4, the staff guidance covers critical changes to the auditor’s report, including the disclosure of auditor tenure and a statement on auditor independence. Also covered under the guidance are requirements concerning Critical Audit Matters (“CAMs”). Auditors can communicate CAMs voluntarily, but auditor communication will be required for audits of large accelerated filers for fiscal years ending on or after June 30, 2019. For all other inspections, the requirement is effective for. Read More.
PCAOB Staff Inspection Brief Reveals Audit Problems Continue
Public Company Accounting Oversight Board (“PCAOB”) inspectors continue to find the same issues during accounting firm inspections that were discovered in previous years. In its 18-page Staff Inspection Brief: Preview of Observations from 2016 Inspections of Auditors of Issuers, the PCAOB identified the following recurring audit deficiencies last year: Auditors’ assessments and responses to the risk of material misstatements Audits of internal controls over financial reporting (“ICFR”) Audits of accounting estimates such as fair value measurements Of the three audit deficiencies identified, the audits of internal controls were the most cited problem among accounting firms. The more common ICFR deficiencies. Read More.