- The SEC’s Advisory Committee on Small and Emerging Companies is scheduled to discuss the requirement for auditors to verify management’s internal controls over financial reporting at its upcoming meeting. The advisory panel previously said smaller companies find the requirement costly, and its members support widening the scope of the exemptions to the rule.
- The Committee of Sponsoring Organizations of the Treadway Commission (COSO) updated its Enterprise Risk Management—Integrated Framework to reflect the connection between an organization’s risk management and its strategy and performance. The updated Framework discusses enterprise risk management relative to the changes in business arising from developments in the financial markets, the emergence of new technologies and demographic changes.
- Some SEC officials believe the FASB’s best course for clearing up the contentious debate about U.S. GAAP’s definition of materiality is to return to the established guidance from the accounting board and the market regulator. The board’s effort to update its definition has been embroiled in controversy since the board proposed making a change in 2015.
- We are pleased to provide comment to the PCAOB regarding the recently issued proposed auditing standard related to auditing estimates, including fair value measurements, and the related proposed amendments to auditing standards related to the auditor’s use of the work of specialists.
- The FASB issued an update to U.S. GAAP that aims to simplify hedge accounting, one of the most complicated areas of accounting. The update allows hedge accounting to be used for a broader range of risk management strategies.