SEC Advisor Speaks on Materiality and Auditor’s Report
At a recent speech for management accountants at a conference in Tulsa, OK, Stephen Deane discussed mini-case studies on policymaking associated with materiality and the independent auditor’s report. Deane, an investment engagement advisor in the Securities and Exchange Commission’s (“SEC”) Office of the Investor Advocate, said that the mini-case studies offer insight into the policymaking process and the problems that policymakers face. The mini-case studies also distinguish between outside investors and managers inside the company. During his speech, Deane provided attendees a technical review of the Financial Accounting Standards Board’s attempts to establish materiality guidance and the Public Company Accounting. Read More.
Topics: Auditor's Report, FASB, Financial Accounting Standards Board "FASB", materiality, PCAOB, Public Company Accounting Oversight Board "PCAOB", SEC's Office of the Investor Advocate, Securities and Exchange Commission "SEC"
SEC Advisory Committee Announces Public Meeting
A public meeting by the Securities and Exchange Commission (“SEC”) Advisory Committee on Small and Emerging Companies (“Committee”) is scheduled for Wednesday, September 13. According to the meeting’s agenda, the Committee will discuss matters concerning rules and regulations impacting small and emerging business under federal securities laws. The meeting will start at 9:30 a.m. ET, and will be hosted in Washington, D.C., at the agency’s headquarters. A live stream of the meeting will be available on SEC.gov.
James Doty to Step Down as PCAOB Chairman, Will Help with Transition
James Doty, current chairman of the Public Company Accounting Oversight Board (“PCAOB”) of the Securities and Exchanges Commission (“SEC”), will step down once the commission has found his successor, according to an SEC announcement on August 11, 2017. Once that successor has been found and named, a date for Doty’s final day will be announced. The SEC has the authority to appoint PCAOB members under the Sarbanes-Oxley Act of 2002. Doty has been in office since 2011, and his term expired in 2015. During the early years of his term, he worked for investor protections.
Change to Smaller Company Definition Expected in Spring 2018
A final rule to expand the smaller reporting company definition could be issued next spring. According to the Office of Budget and Management’s recent update to its rulemaking agenda, the Securities and Exchange Commission (“SEC”) plans to revise the definition to allow more companies to submit fewer disclosures in regulatory filings. Proposed in June 2016, the rule makes businesses with a public float of up to $250 million eligible for the SEC’s reporting requirements under Release No. 33-10107, Amendments to Smaller Reporting Company Definition. With the current threshold at $75 million, only 32 percent of SEC-registered companies had under $75. Read More.
SEC Seeks Comments on PCAOB’s Auditor’s Report Standard
The Securities and Exchange Commission (“SEC”) wants feedback on the Public Company Accounting Oversight Board’s (“PCAOB”) auditing standard, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. Recently, the SEC issued the related document for public comment, Notice of Filing of Proposed Rules on The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, and Departures from Unqualified Opinions and Other Reporting Circumstances, and Related Amendments to Auditing Standards. Subject to SEC approval, the PCAOB standard is intended to improve the effectiveness of the auditor’s report by. Read More.
PCAOB Standard-Setting and Research Agendas Updated
The Public Company Accounting Oversight Board’s (“PCAOB”) Office of the Chief Auditor (“OCA”) has updated its standard-setting agenda. Revised as of June 30, the periodic update reflects the PCAOB’s standard-setting and research agendas, and includes the OCA’s standard-setting agenda, scheduled milestones, and recent developments including the following: Auditor’s Reporting Model (adopted in June by PCAOB and awaiting the Securities and Exchange Commission’s approval) Auditing Accounting Estimates, Including Fair Value Measurements (exposure draft comment period ends Wednesday, August 30) The Auditor’s Use of the Work of Specialists (exposure draft comment period ends Wednesday, August 30) Supervision of Audits Involving Other Auditors. Read More.
Topics: audit quality control systems, Auditing Accounting Estimates (AS 2501), Auditor's Reporting Model, Auditor's Use of the Work of Specialists, Data, PCAOB, PCAOB Office of the Chief Auditor, PCAOB Research Agenda, PCAOB Standard-setting Agenda, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Technology