• Work to continue on key standard-setting priorities

    The PCAOB said in its most recent standard-setting agenda that plans to continue working on the standards projects for accounting estimates and the use of specialists. The two related proposals are intended to strengthen the requirements when auditors scrutinize assets and liabilities that are hard to estimate, such as fair value measurements, oil company reserves, and actuarial forecasts.
  • Public companies urged to focus on effect of new standards on internal controls

    The SEC wants to pay close attention to how the adoption of some of the FASB’s major standards may affect their financial reporting controls in 2018 and beyond. The new revenue standard becomes effective in 2018, and the lease accounting amendments have a 2019 compliance date. Because of the changes to the accounting requirements, public companies and their auditors are expected to face a number of challenges with testing internal controls and ensuring that they are sound.