Group Wants Quality Control Standards to Cover Firm Governance and Leadership
With the Public Company Accounting Oversight Board (“PCAOB”) researching whether to update quality control standards, its Standing Advisory Group (“SAG”) believes the standards should be amended to include firm governance and leadership. Talking to reporters after the SAG’s November 29 meeting, PCAOB Chairman William Duhnke said the board may elevate its research on the standards to a standard-setting project sometime next year but is currently determining the next steps. The PCAOB’s quality control standards mandate accounting firms to employ systems with reasonable assurance that a firm’s employees meet professional standards and the firm’s quality standards. Firm governance and leadership include. Read More.
Reporting Issuers to Get Regulation A Exemptions from SEC
In response to the passing of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Securities and Exchange Commission (“SEC”) plans to offer Regulation A exemptions to reporting issuers. SEC’s Division of Corporation Finance director William Hinman said the agency will act quickly to make the exemptions available to companies bound by reporting under Section 13 or 15(d) of the Securities and Exchange Act. The SEC initially planned to issue a proposal on the Regulation A exemptions in September 2019, but Hinman noted that the agency will accelerate the matter by skipping its formal rulemaking process. If any questions. Read More.
PCAOB Awaits Congress Vote before Proposing Audit Inspection Program
Before it proposes a permanent inspection program for auditors of brokerage firms, the Public Company Accounting Oversight Board (“PCAOB”) wants Congress to pass a bill that curbs broker-dealers’ audit requirements. Speaking earlier this month at the PCAOB’s Investor Advisory Group meeting, William Duhnke stated that the board is waiting for Congress to vote on the Small Business Audit Correction Act this year to allow for legislative movement. If the bill is not passed by the end of the current session, the PCAOB chairman said the board will prioritize its program early next year to address what the inspection program will. Read More.
FASB Issues Narrow Improvements to Leases Standard
To cut costs lessors have when implementing its leases standard, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-20, Leases (Topic 842)-Narrow-Scope Improvements for Lessors. The standard addresses three issues lessors face when applying ASU No. 2016-02, Leases (Topic 842): Taxes collected from lessees:ASU No. 2018-20 gives lessors the option to review whether particular sales taxes and other taxes are lessor or lessee expenses. Lessors can now account for such expenses as lessee costs and omit the costs as lease revenue with a related expense. Certain lessor costs lessees directly pay: ASU No. 2018-20 requires. Read More.
Steve Ursillo Discusses How Technology Will Impact Audit
In a short video for the International Federation of Accountants (“IFAC”), Steve Ursillo, Jr. , shares his thoughts on how technology will affect audit and assurance services. Ursillo, Cherry Bekaert’s National Leader for the Information Assurance & Cybersecurity practice, says new accounting technologies will likely impact the way auditors perform engagements and client services. Watch the video on the IFAC website.
FinREC Issues Proposed Guidance for Inventory Fair Value Measurement
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has proposed new guidance for companies when measuring their inventory’s fair value when purchasing or merging with another company. Issued as a working draft on November 19, the proposed guidance is meant for Audit and Valuation Guide: Business Combinations. The working draft features non-authoritative guidance and illustration for estimating the fair value of inventory acquired in a business combination under FASB ASC 820, Fair Value Measurement. The proposed guidance also offers general principles and two examples presenting how companies should value finished goods and inventory considered a work. Read More.