AccountingLink

    CAQ

    Summary
    The Center for Audit Quality (CAQ) is dedicated to enhancing investor confidence and public trust in the global capital markets.

    Highlights of SEC Regulations committee meetings
    Highlights of the IPTF meeting
    Selected publications

    Highlights of SEC Regulations committee meetings

    26 September 2017

    Highlights - CAQ SEC Regulations Committee - 26 September 2017
    At this meeting, the SEC staff discussed, among other things, waivers per Rule 3-13 of Regulation S-X, update on process for requesting omission of selected financial data, draft registration statement processing, public business entity (PBE) July 2017 EITF announcement, pro forma financial information for a business combination under common control or discontinued operation, and the effects of accounting changes by a successor entity on the predecessor period financial statements.

    11 July 2017

    Highlights - CAQ SEC Regulations Committee - 11 July 2017
    At this meeting, the SEC staff discussed, among other things, disclosures in recent quarterly reports about the expected effects of the new revenue recognition standard and recent SEC staff comments related to disclosures of non-GAAP financial measures, the staff’s view that there is no bright line to use as the significance threshold for determining when to include the financial statements of a business proposed for disposal in a proxy statement soliciting authorization for the disposal, and the staff’s view that pro forma financial information presented in a Form 8-K for a significant acquisition is encouraged to also give effect to previously reported significant acquisitions during the most recent fiscal year or subsequent interim period.

    23 March 2017

    Highlights - CAQ SEC Regulations Committee - 23 March 2017
    At this meeting, the SEC staff discussed, among other things, SAB 74 disclosures about newly-issued standards, non-GAAP financial measures, definition of a business – interaction between the new GAAP definition of a business and the S-X Article 11 definition, the effects of accounting changes by a successor entity on the predecessor period financial statements, adoption of ASC 606, Revenue from Contracts with Customers, when an Emerging Growth Company (EGC) that elected private company adoption dates ceases to qualify as an EGC, and electronic submission of pre-filing correspondence.

    27 September 2016

    Highlights - CAQ SEC Regulations Committee - 27 September 2016
    At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and implementation of the Compliance and Disclosure Interpretations, condensed consolidating information for complying with Regulation S-X Rule 3-10, the 93 day rule when preparing pro forma financial information combining companies that have different fiscal year ends and SEC reporting issues related to transition to the new accounting standards on leases and revenue.

    14 June 2016

    Highlights - CAQ SEC Regulations Committee - 14 June 2016
    At this meeting, the SEC staff discussed, among other things, non-GAAP financial measures and related implementation issues, reporting issues related to transition to the new leasing and revenue standards and confirmed that the disclosure threshold for time deposits under the SEC’s Industry Guide 3 is not linked to Federal Deposit Insurance Corporation insurance limit.

    21 March 2016

    Highlights - CAQ SEC Regulations Committee - 21 March 2016
    At this meeting, the SEC staff discussed, among other things, transition questions related to new leasing standard, FAST Act filing accommodations, conflict minerals, gave a FRM update and discussed non-GAAP financial measures.

    Highlights of the IPTF meeting

    7 February 2018

    SEC Office of Compliance Inspections and Examinations announces 2018 examination priorities
    The SEC Office of Compliance Inspections and Examinations (OCIE) today announced its 2018 examination priorities. OCIE publishes its exam priorities annually to improve compliance, prevent fraud, monitor risk, and inform policy. Of particular interest this year will be matters involving critical market infrastructure, duties to retail investors, and developments in cryptocurrency, initial coin offerings, and secondary market trading.

    16 May 2017

    Highlights - International Practices Task Force - 16 May 2017
    A summary of the issues discussed at the 16 May 2017 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.

    17 November 2016

    Highlights - International Practices Task Force - 17 November 2016
    A summary of the issues discussed at the 17 November 2016 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.

    17 May 2016

    Highlights - International Practices Task Force - 17 May 2016
    A summary of the issues discussed at the 17 May 2016 joint meeting of the Center for Audit Quality SEC Regulations Committee and its International Practices Task Force with the staff of the SEC to discuss emerging financial reporting issues relating to SEC rules and regulations.

    Selected publications

    30 January 2018

    Center for Audit Quality - 2017 Year in Review
    The CAQ has published its 2017 Year in Review. The publication documents key efforts and accomplishments of the CAQ and the public company auditing profession during calendar 2017. Among other topics, it highlights the CAQs work to help public company auditors improve their effectiveness, the support for independent research, the collaborative efforts around fighting financial reporting fraud and working with audit committees, as well as the CAQs engagement with regulators on a range of key issues.

    6 December 2017

    The auditor’s report: Considerations for audit committees
    The CAQ issued a new tool that flags key considerations and questions for audit committees as implementation of the PCAOB’s new auditor’s reporting model gets underway. This CAQ tool explains changes to the auditor’s report and lists key questions on topics including auditor tenure, Critical Audit Matters, and other new requirements.

    25 October 2017

    2017 Main Street Investor Survey
    US investor confidence has reached record heights, according to the Center for Audit Quality’s 11th Annual Main Street Investor Survey. Eighty-five percent of investors expressed confidence in US capital markets for 2017, an all-time high for the survey, which also gauges confidence in markets outside of the US, public companies, and audited financial statements.

    20 June 2017

    Form AP – Auditor reporting of certain audit participants: A tool for audit committees
    The CAQ has published a tool to aid audit committee members in their understanding of new auditor disclosure requirements from the PCAOB regarding audit participants.

    24 May 2017

    The CPA's role in addressing cybersecurity risk
    A new white paper from the CAQ outlines how the auditing profession can help companies and the capital markets address the growing challenges of cybersecurity. The paper highlights the strengths of audit firms - including core CPA values of independence, objectivity and skepticism; experience in providing independent evaluations; and multidisciplinary expertise - that audit firms can bring to bear for the benefit of senior management, boards of directors, and other key capital markets stakeholders.

    16 March 2017

    Addressing challenges for highly subjective and complex accounting areas
    Improved accounting policies and internal controls are key for stemming fraud and reducing the number of financial restatements, according to a new report from the Anti-Fraud Collaboration. The report compiles leading-practice recommendations from dozens of company executives, corporate directors, auditors, and regulators who attended two 2016 workshops to discuss ways to help deter fraud and enhance financial reporting.

    28 June 2016

    CAQ tool helps audit committees examine use of non-GAAP measures
    The CAQ released a new tool to help audit committees continue to assess management's presentation, outside the audited financial statements, of performance metrics that do not conform to Generally Accepted Accounting Principles (GAAP). The publication can assist in the determination of whether non-GAAP indicators provide investors with meaningful financial information.

    27 January 2016

    Center for Audit Quality - 2015 Year in Review
    The CAQ has published the latest edition of its annual Year in Review. The publication documents key efforts and accomplishments of the CAQ and the public company auditing profession during calendar 2015. Among other topics, the Year in Review covers the CAQ’s proactive work to enhance audit quality, its ongoing support for independent research, its partnership with important stakeholders, and its new initiatives to bolster the profession's role and relevance.

    12 January 2016

    New report highlights efforts on audit quality indicators and explores the path ahead
    The CAQ issued a new report that provides insights from a global series of roundtable discussions with audit committee members and other stakeholders on a potential set of audit quality indicators. This outreach, together with the results from pilot testing of the CAQ’s Approach to Audit Quality Indicators, suggests a path forward on efforts to identify the most effective way to assess audit quality.