Audit Committee Brief

April 2019 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.

On the board’s agenda | What to expect from auditor reporting of critical audit matters

This On the board’s agenda article from Deloitte explores one of the main topics of audit committee focus for 2019, the reporting of critical audit matters (CAMs) and the board’s role with respect to CAMs. The article includes information about identifying CAMs, CAM preparation, and what boards might expect on these topics in advance of the first reporting of CAMs this summer.

Audit Committee Brief - April 2019

The Center for Audit Quality updates its External Auditor Assessment Tool

The Center for Audit Quality (CAQ) has updated its External Auditor Assessment Tool, which includes sample questions to help audit committees appoint, oversee, and determine compensation for the external auditor. In the April 2019 edition, the CAQ includes new considerations related to changes in accounting standards and potential risks, and other material to support and enhance audit quality.

A look at innovation in internal audit

This article from The Wall Street Journal discusses innovations in internal audit, from technology to methodologies and beyond. It explores the responses of 1,100 internal audit leaders in 40 countries to a Deloitte survey and provides insights into how internal audit can bring value to organizations.

Board Practices Report: Common threads across boardrooms

The Board Practices Report is a collaboration between Deloitte’s Center for Board Effectiveness and the Society for Corporate Governance. The theme of the 11th edition, “Common threads across boardrooms", focuses on 2018 board and committee practices that reflect current governance topics such as culture, talent, strategy, risk, technology, and innovation. The report includes topics such as the allocation of risk oversight; the size of the audit committee; and the length, form, and frequency of audit committee meetings. 

Lease accounting implementation rates and tips for public and private companies

The Journal of Accountancy outlines the results of a recent survey on the rate at which public and private companies are implementing the FASB’s new lease accounting standard. The article also notes shifts in the focus of public companies after the first deadline and tips for implementation at private companies. 

PCAOB issues new reporting guidance on critical audit matters (CAMs)

The Public Company Accounting Oversight Board (PCAOB) released three staff guidance documents on March 18 to support implementation of the new CAM requirements, which include a reporting requirement for auditors. The guidance was informed by dry-runs auditors have conducted with their clients and the PCAOB’s review of methodologies submitted by US audit firms. 

SEC issues a final rule on some Regulation S-K requirements

The SEC has issued final rules on implementing its FAST ACT Modernization and Simplification of Regulation S-K release. The rules revise certain disclosure requirements and incorporate, with limited modifications, all the amendments outlined in the rule proposed in late 2017. Most of the final rule’s provisions are effective May 2, 2019.

SEC feedback overview on implementation of ASC 606

This issue of Heads Up provides an overview of feedback the SEC has provided registrants on their implementation of the FASB’s ASC 606, Revenue from Contracts with Customers. It highlights critical themes drawn from approximately 400 SEC staff comments and offers examples of those comments.

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