8 December 2015
Compilation of prospective financial information, compilation of pro forma financial information, and Omnibus statement on standards for accounting and review services - 2016
The proposed SSARS Compilation of Prospective Financial Information provides the requirements and guidance with respect to compilations of prospective financial information. Requirements and guidance with respect to examinations and engagements to apply agreed-upon procedures to prospective financial information are retained in the clarified attestation standards. Those clarified standards have been finalized by the Auditing Standards Board and are expected to be issued in late December of 2015 or early January 2016. The proposed SSARS Compilation of Pro Forma Financial Information represents the clarity redraft of AR section 120, Compilation of Pro Forma Financial Information. The proposed SSARS Omnibus - 2016 represents revisions to AR-C sections 60, General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services; 70, Preparation of Financial Statements; 80, Compilation Engagements; and 90, Review of Financial Statements. Comments are due by 6 May 2016.
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.
27 January 2016
Center for Audit Quality - 2015 Year in Review
The CAQ has published the latest edition of its annual Year in Review. The publication documents key efforts and accomplishments of the CAQ and the public company auditing profession during calendar 2015. Among other topics, the Year in Review covers the CAQ’s proactive work to enhance audit quality, its ongoing support for independent research, its partnership with important stakeholders, and its new initiatives to bolster the profession's role and relevance.
12 January 2016
New report highlights efforts on audit quality indicators and explores the path ahead
The CAQ issued a new report that provides insights from a global series of roundtable discussions with audit committee members and other stakeholders on a potential set of audit quality indicators. This outreach, together with the results from pilot testing of the CAQ’s Approach to Audit Quality Indicators, suggests a path forward on efforts to identify the most effective way to assess audit quality.
15 January 2016
November 2015 EITF meeting minutes
At this meeting, the The Emerging Issues Task Force (EITF) reached final consensuses on recognition of breakage for prepaid stored-value products, effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also reached a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows. The EITF discussed but didn’t reach a consensus-for-exposure on the cash flow classification of restricted cash. It plans to discuss this topic at a later date.
13 November 2015
EITF Update - November 2015
The EITF reached final consensuses on recognition of breakage for prepaid stored-value products, effect of derivative contract novations on existing hedge accounting relationships and contingent put and call options in debt instruments. The EITF also reached a consensus-for-exposure on the classification of certain cash receipts and cash payments on the statement of cash flows. The EITF discussed but didn’t reach a consensus-for-exposure on the cash flow classification of restricted cash. It plans to discuss this topic at a later date.
3 February 2016
3 February 2016 FASB meeting
The Board recommended potential financial reporting topics be included in an agenda Discussion Paper that will be issued in the first half of 2016.
29 January 2016
Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments
Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This proposed Update addresses eight specific cash flow issues with the goal of reducing the existing diversity in practice. Comments are due by 29 March 2016.
3 February 2016
The GASB Report - January 2016
The January 2016 newsletter about the work of the Governmental Accounting Standards Board (GASB).
8 December 2015
The objective of this GASB proposal is to improve guidance regarding what constitutes fiduciary activities for accounting and financial reporting purposes and how they should be reported. It would establish criteria for identifying and reporting fiduciary activities of all state and local governments. The focus of the criteria generally is whether a government is controlling the assets of the fiduciary activity and the beneficiaries with whom a fiduciary relationship exists. Comments are due by 31 March 2015.
15 January 2016
Remarks by PCAOB Board Member, Jeanette M. Franzel, at the American Accounting Association's 2016 auditing section mid-year meeting
PCAOB Board member, Ms. Franzel gave remarks as part of a panel session entitled, "Opportunities for Researchers to Inform the PCAOB," at the American Accounting Association's 2016 auditing section mid-year meeting entitled, "The PCAOB’s Interests in and Use of Auditing Research."
23 December 2015
PCAOB announces webinar on inspections of auditors of brokers and dealers
The PCAOB announced the date of its first 2016 webinar in which PCAOB staff will provide an update on findings and developments in the PCAOB interim inspection program for auditors of brokers and dealers. Continuing an outreach initiative that began this year, the webinar will discuss recent inspection findings released in Board public reports and will also cover the inspection process under the interim inspection program. It will take place on Monday, 11 January 2016, from 2 p.m. to 4 p.m. EST.
14 January 2016
Comment Letter - SEC’s fund liquidity and swing pricing proposal
In our comment letter, we recommend that the SEC clarify how mutual funds that would be allowed to use swing pricing (i.e., adjust net asset value per share (NAV) for costs associated with satisfying requests for shareholder purchases and redemptions that exceed certain thresholds) would present NAV on the balance sheet and certain financial highlights and how they would adjust NAV for trade date activity, among other things. We also express our view that auditors should not be responsible for assessing the reasonableness of a fund’s swing pricing policies and procedures and recommend that the SEC clarify that point in any adopting release.
11 January 2016
SEC announces 2016 examination priorities
The SEC announced its Office of Compliance Inspections and Examinations’ 2016 priorities. New areas of focus include liquidity controls, public pension advisers, product promotion, and two popular investment products – exchange-traded funds and variable annuities. The priorities also reflect a continuing focus on protecting investors in ongoing risk areas such as cybersecurity, microcap fraud, fee selection, and reverse churning.