13 July 2016
Auditor involvement with exempt offering documents
The proposed SAS includes performance requirements when the auditor is involved with an exempt offering document. Involvement is determined by a two-benchmark model: (1)The auditor’s report on financial statements or the auditor’s review report on interim financial information is included or incorporated by reference in an exempt offering document, and (2) The auditor performs one or more specified activities with respect to the exempt offering document. Specified activities which trigger involvement are included in the proposed SAS. Although an auditor is not required to become involved in an exempt offering document unless the benchmarks defining involvement are met, auditors are not precluded from becoming voluntarily involved with an offering document in other circumstances. Comments are due by 13 October 2016.
6 July 2016
Amendment to Statement on Standards for Accounting and Review Services No. 21 Section 90, Review of financial statements
The AICPA Accounting and Review Services Committee (ARSC) issued an exposure draft that would amend the AICPA’s standard on reviews of financial statements. AR-C Section 90 includes requirements and guidance when supplementary information accompanies reviewed financial statements and the accountant’s review report thereon. ARSC determined that certain revisions are necessary to correct the requirements and guidance related to reporting on supplementary information. These revisions would be accomplished by amending paragraphs .05 and .80–.82 of AR-C Section 90, Review of Financial Statements, and the corresponding application paragraphs. Comments are due by 2 September 2016.
28 June 2016
CAQ tool helps audit committees examine use of non-GAAP measures
The CAQ released a new tool to help audit committees continue to assess management's presentation, outside the audited financial statements, of performance metrics that do not conform to Generally Accepted Accounting Principles (GAAP). The publication can assist in the determination of whether non-GAAP indicators provide investors with meaningful financial information.
17 May 2016
Highlights - International Practices Task Force - 17 May 2016
A summary of the issues discussed at the 17 May 2016 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 July 2016
June 2016 EITF meeting minutes
At this meeting, the Emerging Issues Task Force (EITF) reached a final consensus on classification of certain cash receipts and cash payments. The EITF also reached a consensus-for-exposure on employee benefit plan master trust reporting.
14 June 2016
EITF Update - June 2016
The EITF reached a final consensus on classification of certain cash receipts and cash payments. The EITF also reached a consensus-for-exposure on employee benefit plan master trust reporting.
19 August 2016
In Focus - FASB accounting standards update on not-for-profit financial statements
The FASB announced its webcast providing an overview of the recently issued ASU on not-for-profit financial statements. It will take place on Tuesday, 13 September 2016, from 1 p.m. to 2:15 p.m. EDT.
15 August 2016
In Focus - Implementation update on revenue from contracts with customers
Registration is open for an upcoming FASB joint webcast with the IASB that looks at implementation of the requirements in Revenue from Contracts with Customers. It will take place on Thursday, 15 September 2016, from 11 a.m. to 12 p.m. EDT.
31 May 2016
GASB Outlook - May 2016
May 2016 electronic newsletter discussing key GASB projects and activities.
29 March 2016
GASB issues enhanced guidance on irrevocable split-interest agreements
The GASB issued recognition and measurement guidance for governments that benefit from irrevocable split-interest agreements.
18 August 2016
PCAOB issues annual report on inspections of broker-dealer auditors
The PCAOB issued an annual report on its interim inspection program for auditors of brokers and dealers. The annual report describes results of inspections conducted in 2015, the first inspection year in which all inspected engagements were governed by the SEC’s 2013 amendments to Exchange Act Rule 17a-5, including the new requirement that broker-dealer audits be performed in accordance with PCAOB standards. The report shows high levels of deficiencies similar to inspection results in previous years.
29 July 2016
Comment Letter - PCAOB proposal on audits involving other auditors
In our comment letter, we supported the PCAOB’s efforts to strengthen the requirements for the lead auditor in an audit involving other auditors. However, we suggested that the lead auditor determination needs further study. We also offered some suggestions to make the amendments more scalable based on assessed risk and to allow lead auditors to rely on their firm’s system of quality controls when evaluating other auditors that are in their network.
21 July 2016
Comment Letter - Regulation S-K concept release
In our comment letter, we recommend the SEC move to a disclosure framework that articulates clear disclosure objectives and allows registrants to more effectively communicate material information to investors. We ask the SEC to consider enhancements to various business and financial disclosures, including those related to the description of the business, risk factors and management’s discussion and analysis. We also suggest that the SEC explore ways to improve the presentation and delivery of information through a company profile approach.
7 July 2016
SEC in Focus - July 2016
Our latest newsletter summarizes developments related to SEC matters, including certain items we have not previously reported in Week in Review. This issue highlights the SEC staff’s continued focus on non-GAAP financial measures and disclosure effectiveness, recent enforcement activities and developments in XBRL. We discuss the SEC's progress on rulemaking and other initiatives, including final rules on payments by resource extraction issuers and proposed changes to the definition of a smaller reporting company.