Audit Committee Brief

A periodic publication that provides audit committee members with recommendations, overviews of corporate governance resources, regulatory and legislative environment outlooks, and technical updates.

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July 2020

  • Special Edition Audit Committee Brief: Audit committee priorities in the current quarter and beyond
  • On the board’s agenda | US: ESG and corporate purpose in a disrupted world
  • CAQ interviews the SEC chief accountant
  • Risks to consider for upcoming audits
  • Recent SEC statements on the impact of COVID-19

June 2020

  • COVID-19-related financial reporting challenges
  • Webcast: Audit committee priorities during times of disruption
  • PCAOB inspection reports redesigned to enhance readability and transparency
  • Guidelines for audit committees during COVID-19
  • Audits involving cryptoassets
  • On the board’s agenda | US: What the board needs to know about blockchain technology
  • SEC rule improves disclosures for business acquisitions and dispositions

May 2020

  • COVID-19 resources site keeps business leaders informed
  • Webcast: Audit committee priorities during times of disruption
  • Report details audit committee disclosures of critical audit matters
  • Changes made to the use of XBRL in digital financial reporting
  • The SEC and PCAOB emphasize risk disclosures for companies in emerging markets
  • PCAOB requests comment on CAMs
  • FASB provides guidance on cash flow hedge accounting during pandemic

April 2020 – Special edition

Accounting and financial reporting considerations for audit committees regarding COVID-19

The impact of COVID-19 can be profound as companies face a variety of risks while navigating through shifting priorities and business activities. During these unprecedented times, it’s imperative that audit committees work closely with management to understand these risks and to oversee the impact they may have on financial statements and related reporting.  

This special edition Audit Committee Brief focuses on the accounting and financial reporting implications that may result from the pandemic and includes audit committee considerations, as well as questions they can ask management, in the following areas:

  • SEC relief
  • Financial reporting and disclosure consideration
  • Accounting implications
  • Internal control over financial reporting

April 2020

  • Special Edition Audit Committee Brief: Accounting and financial reporting considerations for audit committees regarding COVID-19
  • Highlights of the CARES Act
  • PCAOB highlights reminders to assist auditors
  • CAQ releases a resource guide on audit and audit committee considerations
  • Assessing corporate culture to manage risk and avert misconduct
  • SEC’s chairman Jay Clayton and director William Hinman emphasize the importance of disclosure
  • SEC expands qualifications for nonaccelerated filer status
  • FASB decides to defer certain effective dates and provides guidance on COVID-19

March 2020

  • Coronavirus Disease 2019 (COVID-19) developments, impact, and updates
  • On the board’s agenda | The atmosphere for climate-change disclosure
  • Restatements are declining while audit quality is improving
  • Investor perspectives and decisions are evolving
  • Regulators and Big Four accounting firms discuss audit quality in emerging markets and coronavirus
  • SEC proposes amendments to the exempt offering framework

February 2020

  • The International Business Council discusses Big Four reporting sustainability at the World Economic Forum
  • Climate-driven financial risks are hard to ignore
  • BlackRock and State Street CEOs release letters on sustainability
  • SEC proposes rule to modernize MD&A and related financial disclosure requirements

January 2020

  • On the board’s agenda | US: The strategic audit committee: A 2020 preview
  • Governing through regulatory change
  • SEC leaders discuss topics for audit committee focus in the new year
  • PCAOB shares perspectives from audit committee chairs
  • AICPA conference focuses on regulatory developments
  • CII explores initial CAM disclosures
  • PCAOB shines a light on critical audit matters
  • How auditors play a role in company-prepared information
  • PCAOB seeks input on revising quality control standards
  • SEC proposes amendments to the auditor independence framework
January 2020

November 2019

  • Breakdown of CAM disclosures and topics
  • CAQ releases 2019 audit committee transparency barometer
  • Understanding risk in a dynamic world
  • On the board’s agenda | US: The front line of ESG disclosure – The board’s role
  • Changing board diversity around the world
  • On the board’s agenda | US: Outside the four walls – The board’s role in extended enterprise management
  • SEC proposes changes to shareholder proposal rule
  • SEC proposes to improve disclosure of proxy voting advisers
November 2019

October 2019

  • Growing tech fluency on the board
  • Sustainability disclosure trends
  • CAQ releases survey results on investor confidence
  • CAM lessons from initial filings
  • Impact of non-audit services on audit quality
  • Fifteen years of Sarbanes-Oxley
  • SEC expands the “test-the-waters” rule to all issuers

September 2019

  • On the boards agenda | Board oversight of corporate compliance: Is it time for a refresh?
  • Results of initial CAMs filings
  • IFAC recommends leading practices for audit committees
  • SEC guidance for proxy voting responsibilities
  • PCAOB’s inspection report for audits of brokers and dealers
  • PCAOB guidance on auditing estimates and working with specialists

August 2019

  • Assessing the impact of LIBOR’s discontinuation
  • Considerations in using non-GAAP accounting
  • AAERs trends and consequences
  • FASB offers implementation relief to smaller companies
  • SEC looks to update Regulation S-K disclosures

July 2019

  • Audit committee disclosure in proxy statements—2019 trends
  • CAM insights for audit committees
  • Helping investors understand CAMs
  • Investors’ role in improving cybersecurity
  • Impacts of lease disclosures under new standards
  • Understanding the effects of the credit impairment model outside of banking

June 2019

  • Critical audit matters and the board
  • Risks of emerging technologies and the auditor’s focus
  • Investigations into ICFR weaknesses is a risk factor for SEC enforcement
  • SEC seeks to balance reporting requirements with protecting investors
  • PCAOB staff guidance for communication with audit committees regarding independence
  • PCAOB staff guidance on CAM implementation

May 2019

  • Audit committee guidance on implementation of critical audit matters
  • SEC’s chief accountant on the importance of the audit committee
  • The impact of cybersecurity on financial reporting and the role of auditors
  • Guide to internal control over financial reporting
  • Helping audit committees prepare for the new credit losses standard
  • Fraud risk management and internal audit
  • SEC proposes improved disclosures of business acquisitions and dispositions
  • SEC proposes to amend accelerated filer and large accelerated filer definitions
  • Observations from the PCAOB’s 2018 inspections

April 2019

  • On the board’s agenda | What to expect from auditor reporting of critical audit matters
  • The Center for Audit Quality updates its External Auditor Assessment Tool
  • A look at innovation in internal audit
  • Board Practices Report: Common threads across boardrooms
  • Lease accounting implementation rates and tips for public and private companies
  • PCAOB issues new reporting guidance on CAMs
  • SEC issues a final rule on some Regulation S-K requirements
  • SEC feedback overview on implementation of ASC 606

March 2019

  • PCAOB publishes 2019 audit committee inspections outlook
  • Survey indicates boards not corroborating risk information enough
  • Study indicates linkage between financial restatements and long-term capital market consequences
  • Crisis resilience and the board—Taking risk oversight to the next level
  • FASB proposes an accounting standards update on share-based payments

February 2019

  • Quarterly accounting roundup: Year in review—2018
  • Six tips for developing CAM disclosures
  • A roadmap to non-GAAP financial measures—2019 edition
  • Leading practices for audit committees is focus of international report
  • SEC seeks input on quarterly reports and earnings releases
  • Audit & Assurance Update—New PCAOB Standard for Accounting Estimates

December 2018

  • Emerging technologies: An oversight tool for audit committees
  • Highlights of the 2018 AICPA conference on current SEC and PCAOB developments
  • 2019 SEC and other regulatory priorities
  • Lessons learned and questions to consider on critical audit matters
  • Overseeing internal audit: The role of the audit committee
  • SEC chair outlines 2019 regulatory priorities
  • PCAOB standing advisory group meeting summary
  • California Consumer Privacy Act: Thought GDPR readiness was tough?

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November 2018

  • CAQ releases 2018 audit committee transparency barometer
  • PCAOB enhanced audit committee engagement
  • Cyber threat considerations related to the implementation of internal accounting controls
  • Revenue recognition implementation far from over
  • Some answers to lease transition questions
  • FASB discusses improvements to guidance on credit losses

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October 2018

  • The CFO and the Audit Committee: A View From
    Both Sides
  • Investors have much confidence in independent
    audit committees, says survey
  • Risk Oversight and the Role of the Board
  • Using the AICPA’s Cybersecurity Framework to Convey Cyber Preparedness
  • Quarterly Accounting Roundup: Third quarter—2018
  • Study notes half of internal audit processes lack cyber risk assessment
  • SEC comments reflect registrants’ efforts to implement ASC 606
  • SEC clarifies interim stockholders’ equity and effective date requirements

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September 2018

  • SEC issues final rule to update and simplify disclosure requirements
  • Readiness for the new leases standards
  • Frequently asked questions about tax reform
  • Quarterly earnings reports at center of debate
  • Updated guidance on the auditor's report
  • FASB amends guidance on cloud computing arrangements
  • FASB amends disclosure of fair-value measurements

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August 2018

  • Center for Audit Quality publishes resource on critical audit matters
  • SEC to host roundtable on the proxy process
  • Research shows that boards can foster an ethical culture
  • Complying with new accounting standards with consistency
  • PCAOB seeks comment on its strategic plan
  • SEC proposes disclosure simplification and relief related to guarantors and collateralizations of securities
  • FASB releases targeted improvements to ASC 842
  • Predictive sensing in a volatile world: The rise of digital intel

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July 2018

  • On the board’s agenda: Audit committee disclosure in proxy statements—2018 trends
  • ASC 606 is here—How do your revenue disclosures stack up?
  • SEC expands eligibility for “smaller reporting company” classification
  • SEC proposes amendments to whistleblower rules
  • FASB simplifies the accounting for share-based payment arrangements with nonemployees
  • Quarterly Accounting Roundup: Second quarter—2018

June 2018

  • A summary of the PCAOB’s Standing Advisory Group June meeting
  • SEC chief accountant discusses financial reporting
  • PCAOB transitions for the future
  • On the Board’s Agenda: Industry 4.0
  • FASB discusses improvements to related-party guidance for variable interest entities

May 2018

  • Cybersecurity risk management oversight: A tool for board members
  • Boards: Understand the rules for ethics and compliance oversight
  • SEC chief accountant addresses financial reporting conference
  • Global report seeks input on good practices for audit committees supporting audit quality
  • What private companies should know about the new revenue recognition standard
  • SEC publishes graphs illustrating financial reporting structure for public issuers

April 2018

  • Deloitte updates its Audit Committee Resource Guide
  • Preparing for the Leases Accounting Standard: A Tool for Audit Committees
  • Talking to leaders, boards and investors about tax reform
  • Corporate culture risk and the board
  • SEC staff updates C&DIs on non-GAAP financial measures
  • A discussion on hedge accounting

March 2018

  • CAQ releases roadmap for audit committees on Non-GAAP measures
  • In the Spirit of Full Cybersecurity Disclosure
  • Justifying judgment when recognizing revenue
  • Tax and accounting highlights: Limitations on excessive employee compensation
  • FASB discusses feedback on proposed targeted improvements to the new leasing standard
  • FASB issues proposed ASU on cloud computing arrangements

February 2018

  • Year in review—2017
  • Observations by early adopters of the new revenue standard
  • Valuation allowance considerations related to tax reform
  • The Auditor of the Future isn’t who you think
  • FASB proposes income tax guidance related to new tax reform law
  • FASB discusses improvements to guidance on leases

January 2018

This issue revisits 2017 developments that should remain points of focus for audit committees in the new year:

  • Tax reform
  • The PCAOB’s new auditor reporting model
  • Adoption of the new GAAP standards
    • Leasing standard, ASU 2016-02
    • Revenue standard, ASC 606
    • Financial instruments – credit losses, ASU 2016-13
  • Risk oversight
  • Increased audit committee disclosure

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