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
SEC Proposal Labels Certain Securities as Covered Securities
The Securities and Exchange Commission (“SEC”) recently issued the Proposed Rule, Covered Securities Pursuant to Section 18 of the Securities Act of 1933. The proposal would impact Rule 146 under Section 18 of the Securities Act of 1933, by designating certain securities on Investors Exchange LLC as covered securities under Section 18(b) of the Securities Act. According to Rule 146(b), covered securities are national securities exchanges, or segments of such exchanges, that are considered having listing standards that are “substantially similar” to the Named Markets. Covered securities under Section 18(b) are excluded from state law registration requirements. Comments on the. Read More.
SEC Staff to Make Disclosure Rule Changes under Regulation S-K
Securities and Exchange Commission (“SEC”) Chairman Jay Clayton said the agency’s staff is preparing for changes to disclosure rules under Regulation S-K. In a speech on July 12, Clayton remarked that the rule amendments will be founded on the Report on Modernization and Simplification of Regulation S-K. The report, which the SEC submitted to Congress last December, covers various Regulation S-K provisions such as Item 10(d). The rule focuses on companies that issue securities and their ability to include documents in filings by a reference, as opposed to submitting the entire document. The report recommends amending Item 10(d) to allow. Read More.