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.
Nonprofits Slow to Implement Enterprise Risk Management
Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM: Have a risk management governance structure; Follow a risk management framework; Continuously identify risk and the risk event universe; Create and manage a risk profile;. Read More.
SEC’s White Wants Companies’ Directors to be Gatekeepers
Speaking at the 20th Annual Stanford Directors’ College earlier this week, U.S. Securities and Commission (“SEC”) Chair Mary Jo White emphasized the significance of board of directors as the gatekeepers for shareholders of public companies. Relied upon by the SEC, White remarked that the role as gatekeepers allow directors to identify and prevent companies from violating federal securities laws, as well as respond to issues the moment they arise. In regard to directors as gatekeepers, White’s speech also noted: – The board of directors are a company’s most important gatekeepers, and it is by law their responsibility to watch over. Read More.