Audit Committee Brief

June 2018 issue

Audit Committee Brief is Deloitte's publication for audit committee members, providing recommendations, overviews of corporate governance resources, regulatory and legislative environment outlooks and technical updates.

A summary of the PCAOB’s Standing Advisory Group June meeting

At the recent PCAOB Standing Advisory Group (SAG) meeting, the PCAOB provided an update on recent developments, including current and future standard-setting activities. They discussed the implementation of the new auditor’s reporting standard, corporate culture and related audit implications, and the potential implications of cybersecurity on financial reporting and auditing – noting that cybersecurity is no longer an IT issue but a business issue.

Audit Committee Brief - June 2018

SEC chief accountant discusses financial reporting and innovation

In a speech at the Institute of Chartered Accountants in England and Wales, SEC Chief Accountant Wesley Bricker discussed the intersection of financial reporting and innovation. His remarks also focused on the importance of reliable financial reporting information, high-quality audit standards, and the critical role of auditors, and noted that while each of these areas are being influenced by technology, the need for professional integrity will never change.

PCAOB transitions for the future

William Duhnke, who was sworn in as PCAOB chairman in January, recently spoke of his strategic priorities. He noted that although continuity of the PCAOB’s core activities remains a high priority, there is a focus on defining pillars of the board’s vision, strategy, and operational plans for the next five years.

On the Board’s Agenda: Industry 4.0

The integration of digital and physical technologies is accelerating, enhancing companies’ ability to achieve excellence and grow in ways that may not have been possible just a few years ago. This phenomenon, known as Industry 4.0, suggests that connected technologies can transform organizations, operations, and the workforce by increasing information flow, creating new insights, and revolutionizing business models.

FASB discusses improvements to related-party guidance for variable interest entities

The FASB recently discussed feedback received on its proposed Accounting Standards Update (ASU) Targeted Improvements to Related Party Guidance for Variable Interest Entities and made tentative decisions related to the accounting alternative for private companies, decision-making fees, and the related-party guidance for determining the primary beneficiary of a variable interest entity.

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