29 September 2015
Comment Letter - AICPA proposed statement on forming an opinion and reporting on financial statements
In our comment letter, we support the proposed Statement on Auditing Standards. We believe the amendments will improve consistency in reporting when an audit is conducted in accordance with both GAAS and the standards of the PCAOB and the audit is not within the jurisdiction of the PCAOB.
14 August 2015
Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an opinion and reporting on financial statements
Auditors of entities whose audits are within the jurisdiction of the PCAOB are required to be registered with, and subject to inspection by, the PCAOB. In these situations, the AICPA Code of Professional Conduct requires members to conduct the audit of the financial statements in accordance with the standards of the PCAOB and does not also require an audit to be conducted in accordance with GAAS. Other situations exist in which an entity whose audits are not within the jurisdiction of the PCAOB desires to obtain an audit conducted under PCAOB auditing standards. In these situations, the AICPA Code of Professional Conduct requires members to also conduct the audit in accordance with GAAS, which results in the audit being conducted in accordance with multiple auditing standards. The financial statements and the auditor’s report may, in some circumstances, be filed with the SEC. This proposed amendment provides requirements and guidance for reporting on an audit conducted in accordance with both GAAS and the standards of the PCAOB. Comments are due by 30 September 2015.
18 August 2015
CAQ Profession in Focus, Episode 5
In this edition of "Profession in Focus," Stephen R. Howe, Jr., Americas Managing Partner and Managing Partner of the U.S. Firm at EY, shares reflections on auditing, governance, and diversity, including how striving for diversity benefits his firm.
18 June 2015
Highlights - CAQ SEC Regulations Committee - 18 June 2015
At this meeting, the SEC staff discussed its views on, among other things, its views on the remediation of delinquent filings, the date for assessing whether an acquiree is a foreign business and pro forma disclosures related to significant acquisitions of oil and gas businesses. In addition, the SEC staff said that registrants should not analogize to the guidance for treating a spin-off of a subsidiary as a change in reporting entity (SAB Topic 5.Z.7) in situations that are not covered by the SAB (e.g., presentation of carve-out financial statements).
18 September 2015
EITF Update - September 2015
The EITF discussed but didn’t reach a final consensus or consensus-for-exposure on recognition of breakage for prepaid stored-value cards and statement of cash flows: classification of certain cash receipts and cash payments.
19 June 2015
EITF Update - June 2015
The EITF reached final consensuses on the application of the normal purchases and normal sales scope exception to certain electricity contracts within nodal energy markets and employee benefit plan simplifications. The EITF reached consensuses-for-exposure on the effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also discussed but didn’t reach a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows.
7 October 2015
7 October 2015 FASB meeting
The Board discussed its projects on accounting for financial instruments: hedging and disclosure framework: disclosure review - fair value measurement. The Board also continued redeliberating the proposal on Leases.
5 October 2015
5 October 2015 FASB meeting
The Board redeliberated its proposal on revenue from contracts with customers and affirmed most of the amendments in the proposed Update. The Board also made additional decisions within the scope of identifying performance obligations and licensing. The Board also discussed the comments received on the two proposal for income taxes.
21 September 2015
Implementation Guide No. 20XX-X, Implementation Guidance Update—20XX
This proposed implementation guide focuses on questions that have been raised related to GASB’s new standards on pensions, retiree healthcare benefits, and fair value reporting. This proposed guide also addresses a wide array of practice issues on other topics that have been brought to the GASB’s attention. Comments are due by 30 November 2015.
1 September 2015
GASB adds project to revisit blueprint of governmental financial statements
The GASB has added to its technical agenda a project to reexamine the financial reporting model for state and local government financial statements. The project’s objective is to make improvements to the existing financial reporting model, which was established in 1999 through Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments, and subsequent related pronouncements.
1 October 2015
Staff Inspection Brief: Information about 2015 inspections
The PCAOB published a staff inspection brief that highlights the objectives, focus, and scope of its ongoing inspections in 2015 of auditors registered with the PCAOB. This year, Inspections staff is taking a close look at three general areas across firms: Auditing internal control over financial reporting; Assessing and responding to risks of material misstatement; and Auditing accounting estimates, including fair value measurements.
28 September 2015
Comment Letter - PCAOB concept release on audit quality indicators
In our comment letter, we supported the PCAOB’s efforts to develop relevant audit quality indicators (AQIs) that could provide stakeholders, such as audit committees, investors, audit firms and regulators, with additional perspective on matters that affect audit quality. We believe context is critical to understanding and interpreting AQIs to avoid misperceptions that might lead to unintended consequences. Therefore, we believe the PCAOB should allow audit firms and audit committees to continue to voluntarily develop AQIs and should not require a particular set of AQIs and a disclosure approach.
25 September 2015
SEC publishes request for comment on Regulation S-X
The SEC announced that it is seeking public comment on the effectiveness of financial disclosure requirements in Regulation S-X. The request for comment focuses on the requirements for the form and content of financial disclosures that companies must file with the Commission about acquired businesses, affiliated entities, and guarantors and issuers of guaranteed securities.
22 September 2015
Open-end fund liquidity risk management programs, swing pricing
The SEC proposed a comprehensive package of rule reforms designed to enhance effective liquidity risk management by open-end funds, including mutual funds and exchange-traded funds (ETFs). Under the proposed reforms, mutual funds and ETFs would be required to implement liquidity risk management programs and enhance disclosure regarding fund liquidity and redemption practices. The proposal is designed to better ensure investors can redeem their shares and receive their assets in a timely manner.