Audit Committee Brief

June 2020 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.

COVID-19-related financial reporting challenges

This Deloitte Financial Reporting Alert considers some pandemic-related financial reporting issues during the past quarter and what may lie ahead in the next. Links to other financial reporting resources are provided throughout the publication.

June 2020 issue

Webcast: Audit committee priorities during times of disruption

Audit committees and executives who work with audit committees are invited to join the Deloitte webcast on 24 June 2020 that will explore lessons learned from the most recent reporting period and discuss priorities and topics to consider during the upcoming quarter and beyond.

PCAOB to host a webinar for audit committee members

Chairman Duhnke announced the PCAOB will hold a webinar on topics critical to audit committees, including the new format of the inspection report, audits in the COVID-19 environment, and recent standard setting activity. The event will be held on Wednesday, July 8, 2020, 2:00 pm EDT, and registration information is in the PCAOB’s announcement.

PCAOB inspection reports redesigned to enhance readability and transparency

The inspection reports for the six largest US auditors have been enhanced for the first time in 15 years. A user guide notes that the reports include new information, as well as visual representations that are easy to understand. PCAOB Chairman Duhnke highlighted the importance of inspection reports in communicating effectively with investors, audit committees, and other stakeholders.

Guidelines for audit committees during COVID-19

The AICPA has published a checklist to help audit committees address challenges resulting from COVID-19. It provides questions and points to consider as the board oversees risk management, operations, new legislation, financial reporting, technology, and cybersecurity.

Audits involving cryptoassets

This PCAOB spotlight presents considerations for audits involving cryptoassets, and includes questions to ask the auditors when cryptoasset transactions or holdings are material to the financial statements. It also suggests questions that audit committees may consider regarding cryptoassets that are material to the issuer’s financial statements.

On the board’s agenda | US: What the board needs to know about blockchain technology

Blockchain can play a key role in transforming business processes. At the same time, the adoption of any new technology brings risks or threats associated with adoption. The board can play a key role in helping organizations navigate those risks and threats, as well as the opportunities, that may arise from the new technology.

SEC rule improves disclosures for business acquisitions and dispositions

This issue of Heads Up summarizes the SEC’s final rule to amend the financial statement requirements for acquisitions and dispositions of businesses. The changes are intended to improve financial disclosure, facilitate more timely access to capital, reduce complexity, and lower reporting costs.

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