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Deloitte Audit & Assurance
News and media coverage
Check out news coverage featuring leaders in Deloitte’s Audit & Assurance practice gathered from a variety of publications.
Recent Deloitte Audit & Assurance news
Lease accounting standard leaves companies with questions
Accounting Today | June 6, 2017
As companies prepare for implementation of the new lease accounting standard, question are arising regarding its major concepts–including the definition of a lease, lease payments, and presentation and disclosure. In this article, Audit & Assurance partner James Barker and Advisory managing director Sean Torr discuss their interpretation of the new standard and detail a number of transition challenges that will need to be considered.
CFO Journal | April 24, 2017
In this interview-style article, National Managing Partner-Audit Transformation leader Lara Abrash discusses how innovation in technology, such as cognitive technologies and advanced analytics, is adding value to the audit. Learn how audit innovation is transforming audit and enhancing audit quality.
CFO.com | April 17, 2017
Many companies are focusing solely on implementing the new revenue standard and ignoring corresponding disclosure requirements. Big mistake. Senior consultation partner Eric Knachel explains why in this bylined article.
Compliance Week | February 17, 2017
Three of the Big 4 firms have seen net losses numbering in the 20s of their public company audit client bases. For a second straight year, however, Deloitte has managed to hold steady with slight increases both years. Adam Weissenberg, national managing partner, Audit Clients & Industries, discusses how the firm has invested in audit quality measures and in innovating audit with new technology and tools. “That’s getting known in the marketplace,” he continues, “When we meet with potential clients and walk through the tools and innovation, that coupled with quality method has really resonated with clients.”
Compliance Week | February 14, 2017
Public companies should be aware that auditors are developing their game plans for how to scrutinize the impending switch to the new revenue recognition accounting standard. Amy Steele, partner, Deloitte & Touche LLP, says auditors are developing “deep technical expertise” in the new accounting, even within industry sectors where the accounting changes may be more industry-specific, so they will be prepared to ask the right questions as companies proceed through implementation.
Compliance Week | January 24, 2017
The Financial Accounting Standards Board issued an update to accounting standards in March 2016 that aimed to make it easier for companies to account for share-based payment awards. “It’s fair to say the new ASU does simplify some of the tracking. But it doesn’t eliminate all the tracking or all the complexities in trying to figure out the right tax rate to use for each employee in each jurisdiction,” says Sandie Kim, senior consultation partner at Deloitte & Touche. She continues to explain, “Companies often don’t want awards to be classified as a liability, it creates volatility in the income statement.”
Bloomberg BNA | January 12, 2017
Large corporations are gearing up for the most historic accounting changes to hit US capital markets in decades, which will affect the reporting of revenue streams, balance sheets and net income. Mainly, corporations’ focus is on preparing for the bigger accounting standards on revenue recognition, leases and financial instruments—credit losses that are effective in 2018, 2019, and 2020 respectively. “Some companies will likely choose to adopt the new lease accounting rules—effective 2019 but can be applied earlier—at the same time they adopt the revenue rules on its 2018 effective date,” Deloitte & Touche LLP partner Bob Uhl told Bloomberg BNA.
Accounting Today | January 12, 2017
Deloitte professionals displayed some of the company’s latest, innovative technologies for audit, tax, and consulting at its New York offices during the inaugural Deloitte Innovation Demo Day event. Among the technologies on display at the event for auditors were ICount, a mobile app for doing inventory counts and in the area of disclosure analytics, a new technology that rapidly searches through millions of disclosures and accounting policies among companies. “That’s the beauty of why the technology is so important,” said Deloitte & Touche chief innovation officer Jon Raphael. “Now we’re spending almost no time on data capture, binding, reconciling and creating work papers. All the time is spent interacting with people, touching the inventory and moving things around.”
USA TODAY | January 11, 2017
According to a report from the National Venture Capital Association and Deloitte University Leadership Center for Inclusion, women, African Americans and Latinos are significantly underrepresented in venture capital, with few holding decision-making positions. Women make up 45 percent, African Americans make up 3 percent and Latinos 4 percent, of the venture capital workforce. None of the 217 firms with more than 2,500 employees surveyed had an African-American investment partner.
Compliance Week | January 10, 2017
The new five-step method for recognizing revenue that all public companies will apply beginning in 2018 requires companies to begin by identifying their contracts with customers. “A key question is whether the license of intellectual property represents a separate performance obligation from other goods or services in a contract,” says Jeff Ellis, life science industry practice director at Deloitte & Touche, “That notion of whether it is distinct is a difficult judgment to make.”
Compliance Week | January 4, 2017
In terms of accounting change priorities, companies can expect revenue recognition to easily win the top position on their to-do list in 2017. “There is a tendency for people to underestimate the amount of work,” says Eric Knachel, a senior consultation partner at Deloitte & Touche. “The runway is getting shorter, and resources will get tighter and tighter.” He continues by stating many companies haven’t completed their assessments of how they will be affected by the standard to have asked the necessary technical accounting questions, which must be addressed before moving into control design.
San Francisco Business Times | January 4, 2017
A new study from Deloitte and the National Venture Capital Association has again confirmed what many inside and outside the industry have been saying for years: venture capital firms have a problem with diversity. The study collected information from 2,500 employees at 217 venture capital firms nationwide to create a benchmark of diversity and inclusion data about the industry as a whole. The survey characterizes diversity and inclusion as “business imperatives,” pointing to their positive effects on innovation, bottom line performance and attracting talent.
Forbes | January 4, 2017
The importance of women investment decision-makers at venture capital (VC) firms cannot be overstated. According to the NVCA-Deloitte Human Capital Survey Report, women make up just 11 percent of investment decision-makers. The report shows the need and value for VCs to have a human capital strategy—it really does improve diversity at VCs.
Boston Business Journal | January 4, 2017
Deloitte won more auditing work from Massachusetts businesses going public last year than any other accounting firm, landing jobs with a third of the companies that underwent initial public offerings statewide. William Bacic, the managing partner of Deloitte's New England practice, said the firm has been focused on emerging growth companies for 15 years. According to Bacic, Deloitte has 10 partners and managing directors in Boston focused exclusively on emerging growth companies.
ELFA | December 28, 2016
More than one-half (54.7 percent) of respondents to a recent Deloitte poll expect their organizations to increase the amount of time and effort spent on implementing the new Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) lease accounting standards in the coming year. “For the many companies impacted by the new lease accounting standards, the biggest challenge may be in identifying leases themselves,” said James Barker, senior consultation partner in the national office of accounting services of Deloitte & Touche LLP.
Compliance Week | December 22, 2016
The latest poll on big accounting transformations suggests some companies are making plans to devote time in 2017 to the new requirements around lease accounting. More than half of companies who responded to a recent Deloitte poll said they expect to increase in 2017 the amount of time and effort they will devote to transitioning to new lease accounting standards. The poll says roughly one-third of companies are “somewhat prepared” to take on the new accounting in 2019, but only 14 percent are very prepared or extremely prepared. Another 28 percent said they are not prepared for the new requirements.
CFO.com | December 21
National Office’s Eric Knachel takes a holistic view of the new FASB revenue recognition standard, examining various areas and departments the new standard will impact beyond accounting, such as IT systems, legal (contracts), human resources (staffing and training) and compensation, as well as which method–full retrospective or modified–is the best path forward as companies scramble to ramp up their implementation efforts.
USA Today | December 15, 2016
The National Venture Capital Association and Deloitte University Leadership Center for Inclusion delivered the first comprehensive look at the demographics of venture capital firms from its own trade association, and it painted a sobering snapshot of what decades of exclusion of women and minorities have wrought.
Accounting Today | December 12, 2016
Christine Davine, deputy managing partner of Deloitte & Touche LLP’s National Office, assembled and hosted a panel discussion at the AICPA conference on current SEC and PCAOB developments about the use of non-GAAP measures in financial reporting. Following the conference, Davine expanded on specifics that the SEC is interested in observing.
Compliance Week | November 29, 2016
Despite the immediacy and looming deadline for implementing the FASB’s new accounting standard for revenue recognition, companies are also indicating activity and some progress on dealing with the new FASB leasing standard regulations as well. National Office’s James Barker noted, “People are probably not as far along as they’d like to be. Resources are scarce, but we’ve had a lot of good traction with questions, and we expect that to pick up into next year.” And, Advisory’s Sean Torr added,” Complex, multinational organizations are starting to recognize the job they face in identifying all those kinds of arrangements to assure they are captured and reflected under the new standard.
Convenience Store News | November 18
National Office Senior Consultation Partner James Barker and Sean Torr, managing director and leader of Advisory’s Lease Accounting Services group, team up to write an article on how the new FASB leasing standard will specifically impact convenience stores.
FEIDaily.com | November 15, 2016 6:38 am
“I think that in the next five or six years the accounting and auditing profession will change more than they have in the last fifty, certainly the last thirty since I’ve been here,” said Deloitte CEO Cathy Engelbert during the opening keynote of Financial Executive International’s Current Financial Reporting Issues Conference. Engelbert’s comment underscored what she referred to as the “Fusion Revolution,” which includes the fusion of physical, biological and digital worlds and prompted by technological advancement, and which is creating rapid change in industries and the finance staffs that support them.
Accounting Today | November 14
Artificial intelligence, data analytics, and advanced technologies such as drones and robotics illustrate the future of audit. Deloitte CEO Cathy Engelbert and Will Bible, a partner with the Audit Innovation team, addressed these topics at the 2016 FEI Current Financial Reporting Issues Conference.
FEIDaily.com | November 8
Financial reporting needs to adapt to the changing needs of an increasingly diverse set of users. The rapid pace of innovation and the increasing demands of consumers is being felt among all industries and sectors, including preparers of financial statements. Senior consultation partner Bob Uhl examines this issue and what can and is being done to evolve financial reporting to meet the demands of consumers.
FEIDaily.com | November 3
National managing partner Dave Sullivan discusses the future of non-GAAP reporting, including the importance of supporting control structures and engaged audit committee.
Compliance Week | October 18
As auditors of public companies prepare for the upcoming year-end audit cycle and assemble a lengthy list of accounting, regulatory, and market concerns to factor into their audit plans, internal control over financial reporting is certain to priority attention. “It’s probably what everybody thinks about more than anything else,” says Daniel Sunderland, chief auditor at Deloitte. “It is now a piece of the fabric in the dialogue between management, the audit committee, and the auditor.”
Compliance Week | October 12
COSO’s new Fraud Risk Management Guide elaborates on the 8th principle required under its previously authored “Internal Control—Integrated Framework,” which says the organization has considered the potential for fraud in assessing the risks to the achievement of objectives. The impact of the guide will vary, and it will be dependent on how rigorously organizations previously considered fraud when performing risks assessments and designing and implementing relevant controls, says Paul Drogosch, senior consultation partner, National Office of Accounting Services, Deloitte.
FEIDaily.com | October 25
National Office senior consultation partner Eric Knachel discusses the most pressing questions around the implementation of the new FASB accounting standard on revenue recognition as well as Deloitte’s new “A Roadmap to Applying the New Revenue Recognition Standard” comprehensive guide.
CFO.com | September 27, 2016
Jennifer Burns and Jeff Aughton offer guidance on how to establish disclosure controls for non-GAAP measures.
WSJ | September 23, 2016
Lawmakers shifted the fiscal year long ago to get more time for budget deals, but lately, the deadline is getting missed.
While the majority of companies align their fiscal year with the calendar year, many close their books to account for seasonal trends within their industry. “A lot of companies close their books within a week of the end of the year,” said Adam Weissenberg, the clients and industry audit leader for Deloitte. “You don’t need the lag. As long as everyone in your sector is doing the same thing, you’re fine.”
Compliance Week | September 20, 2016
Over the past decade, the cash flow statement has been one of the leading areas of financial restatements, says Dennis Howell, a senior consultation partner in Deloitte’s national office of accounting services. “One of the root causes of cash flow restatements relates to the lack of detailed guidance for specific transactions and inconsistent principles contained in ASC 230.”
Compliance Week | September 7, 2016
Albeit slow, accounting experts are starting to see more companies getting to work to adopt the new revenue recognition requirements. “Many companies have made substantive progress over the summer,” says Eric Knachel, senior consultation partner at Deloitte.
Compliance Week | August 23, 2016
The demands on finance and accounting continue to increase in the post-Sarbanes-Oxley era, as regulators continue to demand more precision in financial reporting, especially with regard to internal controls. Whether because of SOX costs running amok or increased regulatory and competitive pressure in general, a growing number of companies are moving more methodically toward automating more of their internal controls over financial reporting.
Accounting Today | August 1, 2016
Deloitte’s “Heads Up—Controls and non-GAAP measures” provides tips to help companies deal with the Securities and Exchange Commission’s guidance on the use of non-GAAP measures. “There’s a lack of clarity as far as the additional requirements out there between financial statement certifications as well as broader certification of the full filed documents. We wanted to offer some clarity around that,” says Deloitte partner Jeff Aughton.
Compliance Week | July 28, 2016
As part of its current focus on non-GAAP measures, the SEC has questioned whether companies and audit committees have implemented appropriate controls regarding the disclosure of such measures. "Given the recent update to the SEC’s Compliance & Disclosure Interpretations related to non-GAAP financial measures, the timing is appropriate to also look at a company’s related disclosure controls and procedures that cover these measures outside the financial statements,” says Jeff Aughton, an audit partner at Deloitte.
Accounting Today | July 18, 2016
There is no substitute for experience–especially when the experience is about current business issues and challenges. A team of undergraduate and graduate accounting students from Louisiana State University took advantage of this very type of opportunity at the Deloitte Foundation’s 21st annual National Student Case Study Seminar, capturing first place.
Big 4 | July 16, 2016
“For emerging growth companies, IPOs are pivotal for expansion, and a poorly-timed offering can be incredibly difficult to overcome,” said Heather Gates, managing director and West region emerging growth company practice leader, Deloitte Services LP, following a new poll from Deloitte in which more than one-third of companies see timing the market as the largest issue when considering an initial public offering (IPO).
Silicon Valley Business Journal | July 12, 2016
A new Deloitte poll shows more than one-third of companies view timing the market as the biggest concern when considering an initial public offering (IPO). Reservations about building the right team and business infrastructure ranked as the second leading concern. Overall, companies are optimistic IPO activity will increase over the remainder of the year.
Journal of Accountancy | July 12, 2016
The new FASB expected credit loss standard is not just for banks. Financial institutions and their accounting for their loan portfolios will be affected the most by the standard. It also applies to other organizations. Lease receivables, trade receivables, and held-to-maturity debt securities are among the other assets organizations may hold that are within the scope of the standard. “This is not just a banking standard, and it’s not just loans,” said Jonathan Howard, a partner in the Deloitte & Touche LLP national office. “It applies to all entities that have assets that represent the right to receive cash that they carry at amortized cost.”
CFO.com | June 29, 2016
Responding to the FASB proposed accounting standards update (ASU), “Gains and Losses from the Derecognition of Nonfinancial Assets,” should be reported, Kristin Bauer, partner, national office accounting services, commented, “Unlike sales that occur as part of a company’s regular course of business, the proceeds of a sale of a nonfinancial asset “will not be presented as top line revenue because it does not meet the definition of a customer transaction. Instead, it would be presented under income from continuing operations.”
Accounting Web | June 22, 2016
A recent survey and report by Deloitte & Touche LLP revealed that almost half (47 percent) of respondents said implementation of the lease accounting standards by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) will be somewhat or extremely difficult.
CFO.com | June 16, 2016
Commenting on the FASB’s new ASU requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations, senior consultation partner Jonathan Howard said, “While the discussion of the anticipated effects of the new standard has mainly focused on banks, “I hope it’s going to improve financial reporting [more broadly] by giving a more current look at what entities expect to have in the way of credit losses on their financial assets.”
National Real Estate Investor | June 13, 2016
A Deloitte survey on the new FASB lease accounting standard shows the retail sector being the least prepared to comply with the new guidance. Not surprisingly, sectors with higher numbers of leases expected the highest level of difficulty implementing the lease accounting standards.
Journal of Accountancy | June 6, 2016
Disparate tracking systems, expanding global footprints, and M&A activity was among the major reasons given by companies that are encountering challenges with the new FASB lease accounting standards, according to a recent Deloitte survey.
Journal of Accountancy | June 3, 2016
Aside from the expected accounting and IT challenges associated with the implementation of the new revenue recognition standard, compensation arrangements are emerging as a big concern for companies.
Compliance Week | June 2, 2016
Senior consultation partner Eric Knachel advises companies that are considering how they will adopt the new revenue recognition standard to take into account when they might expect to access the capital markets in a stock offering soon as putting the new accounting to work because it could affect just how much revenue they’ll need to restate.
Big 4 | June 2016
Innovation and how it is transforming the audit as well as developing tomorrow’s CPAs was a key topic of discussion at the 51st Accounting Association/Deloitte Foundation Robert M. Trueblood Seminars for Professors.
Accounting Today | May 24, 2016
Breakthrough innovations in such areas as artificial intelligence, workflow automation, and data analytics are enabling auditors to deliver powerful insights that simply weren’t possible before.
Kansas City Business Journal | May 23, 2016
The class of 2016 can start a career right here in the American heartland that in many respects rivals anything Silicon Valley has to offer—by going to work for an audit firm.