Category: Accounting and Auditing
Has the PCAOB finally reached a compromise on naming audit engagement partners?
by Cydney Posner The saga of the PCAOB and its proposals to require identification of the audit engagement partner continues. Compliance Week reports, based on a newly published PCAOB standard-setting agenda, that the PCAOB is now considering issuance of a supplemental request for comment in connection with yet another proposed compromise […]
Good news for companies adopting retrospective approach to new FASB revenue recognition standard
by Cydney Posner One of the critical questions that companies are facing under FASB’s new revenue recognition standard is whether companies that elect to follow a retrospective approach (applying the standard to both current and prior years — e.g., 2016 and 2015 revenues in addition to 2017) will be required […]
Whether 1992 or 2013 version of COSO framework — disclose in management’s and auditor’s internal control reports
by Cydney Posner Last week, I posted a piece regarding the “squishy” deadline (to borrow the term of art coined by the COSO Chair) for implementation of the new 2013 COSO internal control framework. As you may recall, the original 1992 COSO internal control framework is deemed by COSO to […]
Whether 1992 or 2013 version of COSO framework — disclose in management’s and auditor’s internal control reports
by Cydney Posner Last week, I posted a piece regarding the “squishy” deadline (to borrow the term of art coined by the COSO Chair) for implementation of the new 2013 COSO internal control framework. As you may recall, the original 1992 COSO internal control framework is deemed by COSO to […]
Is it OK to delay implementation of the new COSO framework?
by Cydney Posner With the original 1992 COSO internal control framework deemed by COSO to be “superseded” as of December 15, 2014, companies are fast approaching the deadline for adoption of the updated 2013 COSO framework, But is it really a deadline? As quoted in this article in Compliance Week, COSO […]
FASB issues new ASU to fill the gap in GAAP guidance regarding going-concern uncertainties
by Cydney Posner Yesterday, FASB issued an Accounting Standards Update (ASU) regarding the disclosure of uncertainties about a company’s ability to continue as a going concern. ASU 2014-15 “provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures […]
SEC staff to issue guidance related to new revenue recognition standard
by Cydney Posner With 700 pages of new rules released regarding FASB’s new revenue recognition standard, it’s no wonder that companies have a lot of questions about the rules. (For more on the standard, see this post .) According to this article in Compliance Week, the SEC is on the verge […]
PCAOB set to finalize rule requiring identification of lead audit partner
by Cydney Posner Last week, the WSJ reported that the PCAOB expects to finalize a new rule this September that would require audit firms to disclose the name of the engagement partner for each audit. The purpose of the rule, according to its proponents, is to encourage auditors to perform […]
Academic study shows increases in insider sales prior to public release of certain SEC comment letters
by Cydney Posner Articles in Compliance Week and Forbes report on a recent academic study showing unusually high levels of stock sales by insiders in the period prior to public release of SEC comment letters that addressed revenue recognition issues, a topic that can often spell trouble at many companies. The level of […]