AccountingLink

    CAQ

    Summary
    The Center for Audit Quality (CAQ) is dedicated to enhancing investor confidence and public trust in the global capital markets.

    Highlights of SEC Regulations committee meetings
    Highlights of the IPTF meeting
    Selected publications

    Highlights of SEC Regulations committee meetings

    23 March 2017

    Highlights - CAQ SEC Regulations Committee - 23 March 2017
    At this meeting, the SEC staff discussed, among other things, SAB 74 disclosures about newly-issued standards, non-GAAP financial measures, definition of a business – interaction between the new GAAP definition of a business and the S-X Article 11 definition, the effects of accounting changes by a successor entity on the predecessor period financial statements, adoption of ASC 606, Revenue from Contracts with Customers, when an Emerging Growth Company (EGC) that elected private company adoption dates ceases to qualify as an EGC, and electronic submission of pre-filing correspondence.

    27 September 2016

    Highlights - CAQ SEC Regulations Committee - 27 September 2016
    At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and implementation of the Compliance and Disclosure Interpretations, condensed consolidating information for complying with Regulation S-X Rule 3-10, the 93 day rule when preparing pro forma financial information combining companies that have different fiscal year ends and SEC reporting issues related to transition to the new accounting standards on leases and revenue.

    14 June 2016

    Highlights - CAQ SEC Regulations Committee - 14 June 2016
    At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and related implementation issues, reporting issues related to transition to the new leasing and revenue standards and confirmed that the disclosure threshold for time deposits under the SEC’s Industry Guide 3 is not linked to Federal Deposit Insurance Corporation insurance limit.

    21 March 2016

    Highlights - CAQ SEC Regulations Committee - 21 March 2016
    At this meeting, the SEC staff discussed, among other things, transition questions related to new leasing standard, FAST Act filing accommodations, conflict minerals, gave a FRM update and discussed non-GAAP financial measures.

    Highlights of the IPTF meeting

    16 May 2017

    Highlights - International Practices Task Force - 16 May 2017
    A summary of the issues discussed at the 16 May 2017 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.

    17 November 2016

    Highlights - International Practices Task Force - 17 November 2016
    A summary of the issues discussed at the 17 November 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.

    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.

    17 November 2015

    Highlights - International Practices Task Force - 17 November 2015
    A summary of the issues discussed at the 17 November 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.

    Selected publications

    25 October 2017

    2017 Main Street Investor Survey
    US investor confidence has reached record heights, according to the Center for Audit Quality’s 11th Annual Main Street Investor Survey. Eighty-five percent of investors expressed confidence in US capital markets for 2017, an all-time high for the survey, which also gauges confidence in markets outside of the US, public companies, and audited financial statements.

    20 June 2017

    Form AP – Auditor reporting of certain audit participants: A tool for audit committees
    The CAQ has published a tool to aid audit committee members in their understanding of new auditor disclosure requirements from the PCAOB regarding audit participants.

    24 May 2017

    The CPA's role in addressing cybersecurity risk
    A new white paper from the CAQ outlines how the auditing profession can help companies and the capital markets address the growing challenges of cybersecurity. The paper highlights the strengths of audit firms - including core CPA values of independence, objectivity and skepticism; experience in providing independent evaluations; and multidisciplinary expertise - that audit firms can bring to bear for the benefit of senior management, boards of directors, and other key capital markets stakeholders.

    16 March 2017

    Addressing challenges for highly subjective and complex accounting areas
    Improved accounting policies and internal controls are key for stemming fraud and reducing the number of financial restatements, according to a new report from the Anti-Fraud Collaboration. The report compiles leading-practice recommendations from dozens of company executives, corporate directors, auditors, and regulators who attended two 2016 workshops to discuss ways to help deter fraud and enhance financial reporting.

    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.

    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.

    3 November 2015

    Second annual audit committee transparency barometer
    The second edition of the Audit Committee Transparency Barometer, an annual report issued jointly by Audit Analytics and the Center for Audit Quality, identifies encouraging trends in 2015 with respect to voluntary, enhanced disclosure around external auditor oversight, an important facet of the audit committee’s broader financial reporting oversight role.