Checklists may have become a dirty word in some audit and finance contexts, but here’s a checklist that just might be a lifesaver.
The Center for Audit Quality has
assembled a checklist of every accounting, auditing, and regulatory pronouncement effective in the second quarter that might be important to preparers, auditors, and others with an interest in accounting and financial reporting. The list summarizes everything issued by the Financial Accounting Standards Board, the Securities and Exchange Commission, and the Public Company Accounting Oversight Board taking effect in the second quarter of the current calendar year. It also includes links to the original pronouncement materials.
It’s a long list of rules around issues like foreign currency exchange rates, healthcare reform, Sarbanes-Oxley, and various financial reporting issues. It also lists accounting standards that are not yet effective for the current reporting period, but where the SEC might expect to see some disclosure.
Guidance from the PCAOB is light, with only a single piece of staff guidance taking effect regarding audit firm annual reporting requirements. The SEC issued a new rule on interactive data and some interpretive guidance around SEC disclosures and compliance and disclosure interpretations.
FASB, on the other hand, has been more prolific. The CAQ lists 13 different accounting standards updates addressing such topics as subsequent events, debt, receivables, revenue recognition, casino jackpots, financial services insurance, stock compensation, derivatives and hedging, software, and revenue recognition.
The CAQ said it assembled the list as part of its mission to promote audit quality. The checklist may be helpful to public companies as they finalize second-quarter and year-end financial statements, just as a backstop to be sure they haven’t missed anything.