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.
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.
AICPA Releases Updates to AAG Standards and Audit Risk Alert
Published on June 26th, the American Institute of Certified Public Accountants (“AICPA”) issued updates to five Audit and Accounting Guides (“AAG”). The AAG updates include the following: Compilation and Review Engagements now offers interpretive guidance on recent adjustments to the Statements on Standards for Accounting and Review Services for compilation and review engagements. The Construction Contractors update includes simplified versions of the Auditing Standards Board’s audit standards and Professional Ethics Executive Committee’s Ethics Code of Professional Conduct. Investment Companies reflects modifications to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (ASU) No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the. Read More.
Topics: AAG Standards, Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Audit, Audit and Accoutning Guide "AAG", Audit Risk, Balance Sheet, disclosure, Ethics, Financial Accounting Standards Board "FASB", Investment Companies, Investment Company Act, Professional Ethics Executive Committee "PEEC", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
FASB’s Going Concern Amendment to Affect PCAOB Standards
In the coming weeks, the Financial Accounting Standards Board (“FASB”) plans to release an amendment that requires struggling companies to inform investors regarding their chances of surviving. Entitled proposed Accounting Standards Update No. 2013-300, Presentation of Financial Statements (Topic 205)—Disclosure of Uncertainties about an Entity’s Going Concern Presumption, the update is in response to investors and regulators who believed auditors issued going concern reviews of companies after the stock price mirrored the market’s knowledge of their pending demise. Per the FASB’s final update to U.S. GAAP, a company will be required to add in its financial statement footnotes when “substantial. Read More.
Topics: Accounting Standards Update, American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Bruce Webb, disclosure, Financial Accounting Standards Board "FASB", Financial Statements, Going Concern, International Financial Reporting Standards "IFRS", Public Company Accounting Oversight Board "PCAOB", U.S. GAAP, U.S. Securities and Exchange Commission "SEC"
PCAOB Guidance Issued for Audits of Broker-Dealers
Assisting auditors of brokers and dealers registered with the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board (“PCAOB”; “the Board”) has issued Staff Guidance for Auditors of SEC-Registered Brokers and Dealers (“the Guidance”). Effective for fiscal years ending on or after June 1, 2014, the Guidance will help auditors complete audits in line with the Board’s standards required by the Dodd-Frank Act and SEC. During the transition period, auditors can reference the Guidance to note any requirements for SEC-registered broker-dealer audits and attestation engagements. Additionally, the new Guidance offers assistance on implementing PCAOB standards to such. Read More.
New PCAOB Standard & Amendments to Improve Auditing Process
Enhancing auditor performance requirements, the Public Company Accounting Oversight Board (“PCAOB”) has adopted a new standard and amendments reflecting three essential areas of the auditing process. Agreed upon at its recent meeting, the PCAOB concluded that current requirements in the related areas of the auditing process provide insufficient mandated procedures and are inadequately risk-based. Further, inspection and enforcement activities show these areas continue to be major weaknesses among auditors. As a result, the PCAOB has implemented Auditing Standard No. 18, Related Parties (“AS 18”). Taking the place of interim standard AU sec. 334, Related Parties, AS 18 reflects transactions and. Read More.