FASB to Align Materiality Definition with Other Organizations
The Financial Accounting Standards Board (“FASB”) has finalized a two-part plan that involves returning to an older definition of “materiality.” At its March 21 meeting, the board agreed to use the materiality definition stated in Statement of Financial Accounting Concepts (“CON”) No. 2, Qualitative Characteristics of Accounting Information, and add an internal guide to its Concepts Statements to help produce consistent requirements for new U.S. GAAP disclosures. According to the FASB, the concept of materiality under CON No. 2 aligns with the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and the American Institute of Certified Public Accountants. Also. Read More.
Topics: AICPA, American Institute of Certified Public Accountants "AICPA", FASB, Financial Accounting Standards Board "FASB", materiality, Notes to Financial Statements (Topic 235), PCAOB, Proposed Account, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Statements of Financial Accounting Concepts
AICPA Board Offers New Auditor Reporting Guidance
The American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board has released new guidance to help auditors comply with AU-C section 700, Forming an Opinion and Reporting on Financial Statements, when performing an audit under the Public Company Accounting Oversight Board’s (“PCAOB”) revised reporting standards. Issued as Interpretation No. 4, “Reporting on Audits Conducted in Accordance With Auditing Standards Generally Accepted in the United States of America and the Standards of the PCAOB,” the guidance is presented in a questions and answers format. The guidance covers standard fact patterns and includes illustrative examples and reports. Interpretation No. 4 was. Read More.
AICPA Updates Attest Interpretation No. 4
The American Institute of Certified Public Accountants (“AICPA”) recently amended Attest Interpretation No. 4, Performing and Reporting on an Attestation Engagement Under Two Sets of Attestation Standards, of AT-C section 105, Concepts Common to All Attestation Engagements. Interpretation No. 4 offers guidance on conducting attestation engagements under two sets of attestation standards, such as the AICPA standards and standards from either the PCAOB or the International Auditing and Assurance Standards Board. Practitioners can perform and report an attestation engagement compliant with two sets of attestation standards providing that both sets of standards are followed. The updates impact paragraphs .31 to. Read More.
Topics: Agreed-Upon Procedures Engagement, AICPA, American Institute of Certified Public Accountants "AICPA", Attestation Standards, PCAOB, PCAOB Interim Attestation Standards, Public Company Accounting Oversight Board "PCAOB"
SEC Approves 2018 PCAOB Budget and Accounting Support Fee
In its recently issued order, the Securities and Exchange Commission (“SEC”) approved the Public Company Accounting Oversight Board’s (“PCAOB”) budget and annual accounting support fee for 2018. This year’s PCAOB budget is approximately $259.9 million, which is a 3.2 percent (or $8.6 million) drop from the 2017 budget. The PCAOB approved its 2018 fiscal-year budget in November. The order states that due to budget control requirements, the PCAOB budgeted expenses requires a slight reduction.
William Duhnke Sworn in as PCAOB Chairman
Longtime Republican staffer William Duhnke was sworn in last week as chairman of the Public Company Accounting Oversight Board (“PCAOB”). Replacing Chairman James Doty, Duhnke previously served as an aide to Alabama Senator Richard Shelby and was the staff director and general counsel for the Senate Committee on Rules and Administration. In his first act as chairman, Duhnke appointed Francis Dymond as the PCAOB’s chief of staff. At the same event, former Treasury Department counselor Kathleen Hamm was sworn in as chair to the PCAOB. Duhnke and Hamm were appointed as new PCAOB members in December by the Securities and Exchange Commission. The remaining newly elected members, Robert Brown, Duane DesParte and James Kaiser, will be sworn. Read More.
PCAOB Standard-Setting Update as of December 31, 2017
The following reflects the Public Company Accounting Oversight Board’s (“PCAOB”) updated standard-setting agenda as of December 31, 2017: Auditing Accounting Estimates, Including Fair Value Measurements: Considering a recommendation for the next PCAOB action. The Auditor’s Use of the Work of Specialists: Considering a recommendation for the next PCAOB action. Supervision of Audits Involving Other Auditors: Reviewing comments on the supplemental request for comments and planning the next steps. Going concern: Covering outreach, monitoring, and research efforts. Along with the release of its revised standard-setting agenda, the PCAOB has added four projects to its research agenda. The projects involve quality control standards, changes in the use of data and technology in audits, the auditor’s role. Read More.