Highlights of SEC Regulations committee meetings
Highlights of the IPTF meeting
31 March 2015
Highlights - CAQ SEC Regulations Committee - 31 March 2015
At this meeting, the SEC staff discussed its views on, among other things, its views on adopting the new consolidation standard, identifying the predecessor(s) of a newly formed registrant in a spin-off, its views on initial public offering or put-together transaction,its view that S-X Rule 3-14 requires financial statements of significant real estate acquisitions made during all years presented in a registration statement, even if the acquired property was included in the registrant’s audited financial statements for 12 months and confirmation that a registrant must include quarterly financial data under S-K Item 302 in any registration statement filed after the initial registration statement (even if the registrant has not yet filed its first Form 10-K).
23 September 2014
Highlight of the SEC Regulations committee Meetings on 23 September 2014.
At this meeting, the SEC staff discussed, among other things, the new revenue recognition standard and discussed several areas outside of the financial statements that may be affected by the new revenue recognition standard, the current project underway to review the effectiveness of existing disclosure requirements, and its views on predecessor financial statements primarily as they relate to identifying a predecessor.
25 June 2014
Highlights - CAQ SEC Regulations Committee - 25 June 2014
At this meeting, the SEC staff discussed, among other things, its disclosure effectiveness initiative, clarified that a thoughtful attempt to improve the effectiveness of disclosures will not trigger a review or result in any additional comments from the staff, its decision to not object to a real estate investment trust’s presentation of gains or losses on the sale of properties that do not qualify as discontinued operations under either S-X Rule 3-15 or US GAAP, and its view that when registrants update the age of financial statements in a Form 10 in compliance with S-X Rule 3-12, they are required to file an amendment to the Form 10 before it becomes effective, rather than file an Exchange Act periodic report.
21 March 2014
Highlights - CAQ SEC Regulations Committee - 21 March 2014
At this meeting, the SEC staff discussed, among other things, its view that it will not object to the presentation of dividends per share on the annual income statement and confirmed that significance tests to determine other entity financial statement requirements must be performed using US GAAP applicable to public business entities and may not use financial information based upon private company alternatives. They also discussed the SEC staff’s decision to not object to the exclusion of disclosures under Rule 4-08(g) of Regulation S-X for individually insignificant investees when Rule 3-09 financial statements are provided for other, significant investees and disclosures about the insignificant investees would be immaterial.
25 September 2013
Highlights - CAQ SEC Regulations Committee - 25 September 2013
At this meeting, the SEC staff discussed its views on, among other things, SEC enforcement initiatives, including the use of the Accounting Quality Model to flag high-risk activities, application of the temporary scope exception from management’s assessment of internal control over financial reporting to the acquisition of a business through a merger of entities under common control, and potential practice issues related to the FASB’s proposals to permit private companies to apply alternative accounting principles.
18 June 2013
Highlights - CAQ SEC Regulations Committee - 18 June 2013
At this meeting, the SEC staff discussed its views on, among other things, disclosing the selected transition method after the final standard on revenue recognition is issued later this year, the plan to consider whether to provide further guidance on the new revenue recognition standard related to disclosures about the effect on the registrant's financial position and results of operations, and the disclosure of historical information in the five-year selected financial data table and management's discussion and analysis when the modified retrospective transition method is selected, views on determining the significance of dispositions by Smaller Reporting Companies and related pro forma requirements.
19 March 2013
Highlights - CAQ SEC Regulations Committee - 19 March 2013
At this meeting, the SEC staff discussed its views on, among other things, pro forma adjustments, capital formation initiatives, Rule 3-14 of Regulation S-X, complying with Rule 3-09 of Regulation S-X when the registrant's and investee's fiscal year-ends differ by six months, applying the "grace period" in Rule 3-09 of Regulation S-X, changes in guarantor structure and impacts on Rule 3-10 of Regulation S-X Reporting, measuring the significance of a recently acquired subsidiary or issuer guarantor, and application of the updating requirements for Rule 3-05 of Regulation S-X when Rule 3-06 of Regulation S-X has been used to satisfy the audited financial statement requirement in the most recent year.
25 September 2012
Highlights - CAQ SEC Regulations Committee - 25 September 2012
At this meeting, the SEC staff discussed its views on, recent filing reviews on fair value disclosures and the application of ASU 2011-04, disclosure requirements under the Iran Threat Reduction and Syria Human Rights Act of 2012, the Contractual Obligations Table, the JOBS Act and the SEC staff’s Final Report on its IFRS Work Plan.
27 June 2012
Highlights - CAQ SEC Regulations Committee - 27 June 2012
At this meeting, the SEC staff discussed its views on, among other things, non-GAAP financial measures related to pension accounting, a revised definition of “continuing impact” for pro forma income statement adjustments, clarified views on retrospectively revising historical financial statements incorporated by reference into a new or amended registration statement and provided an update on other SEC activities, including the JOBS Act and recommendations by the SEC Advisory Committee on Small and Emerging Businesses.
1 November 2011
Highlights - CAQ SEC Regulations Committee - 27 September 2011
At this meeting, the SEC staff discussed its views on, among other things, management's responsibility for validating quotes from pricing services in determining fair value of Level 2 assets and liabilities. The SEC staff also discussed loss contingency disclosures and cautioned that it may request supplemental information about how a registrant concluded that it could not provide an estimate of loss.
28 June 2011
Highlights - CAQ SEC Regulations Committee - 28 June 2011
A summary of the issues discussed at the 28 June 2011 joint meeting of the Center for Audit Quality SEC Regulations Committee and the SEC staff.
29 March 2011
Highlights - CAQ SEC Regulations Committee - 29 March 2011
A summary of the issues discussed at the 29 March 2011 joint meeting of the Center for Audit Quality SEC Regulations Committee and the SEC staff.
21 September 2010
Highlights - CAQ SEC Regulations Committee - 21 September 2010
A summary of the issues discussed at the 21 September 2010 joint meeting of the Center for Audit Quality SEC Regulations Committee and the SEC staff.
19 May 2015
Highlights - International Practices Task Force - 19 May 2015
A summary of the issues discussed at the 19 May 2015 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
18 November 2014
Highlights - International Practices Task Force - 18 November 2014
A summary of the issues discussed at the 18 November 2014 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
21 May 2014
Highlights - International Practices Task Force - 21 May 2014
A summary of the issues discussed at the 21 May 2014 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
21 May 2013
Highlights - International Practices Task Force - 21 May 2013
A summary of the issues discussed at the 21 May 2013 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
20 November 2012
Highlights - International Practices Task Force - 20 November 2012
A summary of the issues discussed at the 20 November 2012 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
22 May 2012
Highlights - International Practices Task Force - 22 May 2012
A summary of the issues discussed at the 22 May 2012 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
24 May 2011
Highlights - International Practices Task Force - 24 May 2011
A summary of the issues discussed at the 24 May 2011 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
23 November 2010
Highlights - International Practices Task Force - 23 November 2010
A summary of the issues discussed at the 23 November 2010 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.
5 June 2015
Deterring financial fraud: What else can be done?
The CAQ will host a webcast on deterring financial fraud on 16 July 2015 from 1 p.m. to 2:30 p.m. Eastern time. Panelists will discuss lessons learned from recent SEC enforcement proceedings and provide concrete, action-oriented steps that governance professionals can take to deter financial fraud. All key financial reporting professionals, audit committee members, financial executives, internal auditors, external auditors and compliance professionals are encouraged to register and attend this webcast. Participants will be eligible to receive 1.5 CPE credits and 1.5 NACD skills-specific credits.
2 June 2015
Audit committee collaboration releases external auditor assessment tool for audit committees worldwide
The Audit Committee Collaboration released the External Auditor Assessment Tool: A Reference for Audit Committees Worldwide, a resource that can be used by audit committees or those charged with governance around the globe. The Tool is designed to assist audit committees in evaluating the external auditor to assess the quality of the audit, or to select or recommend the retention of the audit firm.
29 May 2015
CAQ comment letter - SEC disclosure effectiveness initiative - EDGAR modernization
The Business Roundtable, the Center for Audit Quality, Financial Executives International, and the U.S. Chamber of Commerce’s Center for Capital Markets Competitivenes filed a comment letter offering recommendation on the SEC’s EDGAR Modernization initiative. The letter outlines recommendations that could incrementally improve EDGAR filing information on the SEC’s website in the near-term, prior to implementation of other enhancements and without the need for SEC rulemaking.
27 May 2015
Center for Audit Quality launches “Profession in Focus” web video series
The CAQ launched an online video series that aims to highlight critical issues facing the public company auditing profession and the markets. Hosted by CAQ Executive Director Cindy Fornelli, Profession in Focus will feature interviews with an array of thought leaders from the auditing profession, corporate governance world, investor community, the regulatory arena, academia, and other important constituencies with a connection to the financial reporting process.
10 March 2015
Intersecting roles: Fostering effective working relationships among external audit, internal audit, and the audit committee
Stronger communications and cooperation among three key players in the financial statement auditing process could help avoid potential tensions and pay big dividends in improved risk management. This report highlights examples of such strong communications and cooperation from organizations across the country, with a focus on building a clearer understanding of what external auditors require to be able to use the work of internal audit, and when it is not appropriate to use that work. The report is based on a series of three roundtable discussions in the Fall of 2014, sponsored by the CAQ and The Institute of Internal Auditors' Audit Executive Center, which drew representatives from each stakeholder group.
26 January 2015
Center for Audit Quality - 2014 Year in Review
The Year in Review covers the CAQ’s key activities and accomplishments in support of public company audit quality. Among other topics, the report highlights the CAQ's work of engaging with policymakers, its release of member alerts and new guides to help public company auditors, its collaboration to produce information and tools aimed at improving the operation of the financial reporting supply chain, and its new research, including a comprehensive report on financial restatements, and helped to foster new academic studies on a range of topics related to audit quality.
2 December 2014
CAQ Alert 2014-12, CAQ, Audit Analytics release findings from New Audit Committee Transparency Barometer
The CAQ released findings from the new Audit Committee Transparency Barometer. Working together with Audit Analytics, an independent research provider, the CAQ has undertaken an extensive analysis of 2014 audit committee disclosures in proxy statements, applying a “barometer” for the first time to measure the robustness of these disclosures among 1,500 Standard & Poor’s (S&P) composite companies.
19 November 2014
CAQ Alert 2014-11, SEC/PCAOB independence rules for non-issuer audit and attestation engagements
This alert, issued jointly by the CAQ and the AICPA, is intended to provide audit firms with an overview of the independence rules of the SEC and PCAOB applicable with respect to financial statement audit and attestation engagements undertaken for non-issuer broker-dealers that are registered with the SEC as a broker or dealer; and where the engagement(s) is subject to the requirements of SEC Rule 206(4)-2 , SEC-registered and state-registered investment advisers, related party custodians, or private funds.
17 November 2014
The fraud resistant organization
This report provides valuable information about the conditions that might make an organization more susceptible to fraud - and how to mitigate those conditions. The report marks the latest effort from the Anti-Fraud Collaboration, an initiative whose members include the CAQ, FEI, The Institute of Internal Auditors, and the National Association of Corporate Director.
27 August 2014
Professional judgment resource
The CAQ issued the Professional Judgment Resource, designed to provide auditors with an example of a decision-making process to facilitate important auditing and accounting judgments in a professionally skeptical manner.
23 July 2014
Financial restatement trends in the United States: 2003-2012
Analysis of the trends in and characteristics of restatements of public company financial statements provides useful information for all stakeholders in the capital markets. Preparers, auditors, and investors benefit from information on the types of restatements, the accounting issues that resulted in the need for a restatement, and the severity of those issues. This study, authored by Professor Susan Scholz of the University of Kansas, focuses on the decade following the implementation of the Sarbanes-Oxley Act of 2002. It examines developments in the number and seriousness of restatements over this period and chronicles key policy changes that may have had an impact on restatements.
19 June 2014
CAQ letter to PCAOB on auditor reporting field-testing findings
In this comment letter to the PCAOB , the CAQ outlined key findings from a collaborative effort by members of the public company auditing profession to field test certain aspects of the Board’s auditor’s reporting model proposal. The CAQ continues to support the PCAOB’s efforts to update the auditor's reporting model and hopes that observations from the profession’s field-testing initiative can provide valuable insights to the PCAOB as it contemplates next steps in this important effort.
29 May 2014
How to improve your whistleblower program and address impediments to reporting
The CAQ will host a webcast on how to improve whistleblower programs on 1 July 2014 from 2 p.m. to 3:30 p.m. Eastern time. Panelists will discuss (1) how organizations have successfully integrated whistleblower hotlines into their corporate cultures, (2) actions companies can take to improve their programs and (3) how to address reluctance by employees to use programs.
12 May 2014
CAQ Alert 2014-6, Broker and dealer
This Alert, issued jointly by the CAQ and the AICPA, is intended to remind audit firms of certain auditing considerations in response to regulatory changes set forth by the SEC and the Commodity Futures Trading Commission, as well as related guidance and standards issued by the PCAOB.
24 April 2014
CAQ approach to audit quality indicators
This paper from the CAQ represents a two-year effort with its member firms to develop perspectives regarding which indicators may be most relevant and how and to whom they should be communicated. The paper sets forth in detail the CAQ approach to communicate a set of potential Audit Quality Indicators (AQIs), which will be pilot tested by CAQ member firms with select audit committees.
21 March 2014
CAQ Alert 2014-3, Cybersecurity and the external audit
In response to increasing concerns in the business, investment, and regulatory communities around cybersecurity risk management, the CAQ issued to its nearly 600 public company auditing firm members an alert which summarizes the responsibilities of the independent external auditor with respect to cybersecurity matters.
29 January 2014
Center for Audit Quality - 2013 Year in Review
The Year in Review covers the CAQ’s key activities and accomplishments in support of public company audit quality. Among other topics, the report highlights the CAQ's work to help public company auditors improve their effectiveness, its support for independent research, its collaborative efforts around fighting financial reporting fraud and working with audit committees, and its engagement with regulators on many key issues including the auditor’s report, audit quality indicators, and the going concern model.
17 December 2013
Select auditing considerations for the 2013 audit cycle
This Alert is intended to remind member firms of certain auditing considerations that may be relevant for the 2013 audit cycle. The Alert identifies and discusses some of the more judgmental or complex audit areas, including those which have recently been the subject of attention and focus by regulators. While the Alert highlights certain areas for consideration, it should not be relied upon as definitive or all inclusive, and should be read together with the applicable rules, standards, and guidance in their entirety. The CAQ encourages member firms to consider the topics addressed in this Alert in executing their 2013 audits.
22 November 2013
Governance leaders issue "Call to Action" to enhance the audit committee report
The Center for Audit Quality (CAQ), together with other corporate governance and policy organizations (The National Association of Corporate Directors, Corporate Board Member/NYSE Euronext, Tapestry Networks, The Directors’ Council and the Association of Audit Committee Members, Inc.) published a report on Enhancing the Audit Committee Report: A Call to Action. The report recommends that audit committees of public companies enhance public disclosures to better inform investors and the public about how they fulfill their duties. The report also provides examples of emerging disclosure practices and cites the recent EY paper, Audit committee reporting to shareholders,which highlights notable changes in disclosure practices between 2012 and 2013.
13 May 2013
CAQ provides perspectives on understanding audit quality to PCAOB ahead of SAG meeting
In an effort to contribute to the goal of defining audit quality, the CAQ provided to the PCAOB a letter outlining its perspectives on components of an audit quality definition, beneficiaries of an audit, the role others have in impacting an audit, and how the most relevant audit quality indicators may be identified.
9 May 2013
An analysis of alleged auditor deficiencies in SEC fraud investigations: 1998 - 2010
This report examines auditor involvement in fraudulent financial reporting cases cited in SEC enforcement actions issued from 1998-2010. During the 13-year period, there were 87 sanctions against external auditors in SEC fraud investigations involving publicly traded companies. It highlights insights for the audit profession related to the 87 instances of alleged auditor deficiencies involving fraudulent financial reporting.
13 December 2012
Financial Statement Disclosure Effectiveness: Forum Observations Summary
The FASB and CAQ issued a report summarizing the observations of financial reporting stakeholders at two forums on disclosure effectiveness. The discussion focused on aspects of the FASB’s recent Invitation to Comment on a disclosure framework, as well as financial reporting issues beyond the scope of that document.
9 November 2012
PCAOB releases Guide to PCAOB Inspections
The Center for Audit Quality (CAQ) has released the Guide to PCAOB Inspections, which provides a high-level overview of the PCAOB’s process for inspecting public company auditing firms, including the process for selecting and reviewing audits for conformance to audit standards, and the assessment of a firm’s audit quality program.
18 October 2012
Audit committee annual evaluation of the external auditor
The National Association of Corporate Directors released this tool intended to help audit committees evaluate the quality of audit services, including the auditor's independence, objectivity and professional skepticism. The tool was developed through a collaborative effort of organizations representing both corporate board members and the audit profession.
10 October 2012
Discussions with audit committees about inspection findings and quality control matters
The CAQ issued a practice aid intended to encourage audit firms to proactively communicate with audit committees about inspections findings and quality control improvements.
10 May 2012
Summary of Workshop on the Evolving Role of the Auditor
The Center for Audit Quality (CAQ) recently published a report summarizing its 12 March workshop on the evolving role of the auditor. The workshop was built on a series of CAQ roundtables held with a range of stakeholders during 2011. Workshop participants explored key questions discussed at the roundtables, including the benefits of auditor involvement with financial information disclosed by management outside of the audited financial statements including Management’s Discussion and Analysis, earnings releases, and key performance indicators.
1 October 2011
CAQ investor survey results show confidence in auditors/audit committees
CAQ recently released results of its Fifth Annual Main Street Investor Survey - findings that are positive for auditors and audit committees. The study of 1,003 investors nationwide reveals that investors have the greatest confidence in "independent auditors who audit publicly-traded companies" when it comes to trust accorded various entities charged with looking out for investors' interests. Respondents ranked independent audit committees third on their confidence scale, behind financial advisors and brokers, and well ahead of corporate management.
1 May 2011
In-depth guide to public company auditing
This Center for Audit Quality guide is designed for investors and those interested in understanding the external audit process for public companies and role the audit plays in our capital markets
1 October 2010
Deterring and detecting financial reporting fraud: a platform for action
This Center for Audit Quality report focuses on financial reporting fraud at publicly-traded companies.