Accounting & Auditing


Accountingbestpractices

FASB proposes update to hedge accounting layering method

2021-05-07T15:40:00+01:00By

The Financial Accounting Standards Board proposed an update designed to further align its derivatives and hedging standard with risk management strategies employed by organizations.

ArrowsUp

Study: SPACs surge shakes up first-quarter IPO market

2021-05-06T17:11:00+01:00By

Because of the recent SPACs craze, the first quarter of 2021 saw the highest IPO activity in U.S. markets in at least 20 years, according to Audit Analytics. David Bukzin, leader of the SPAC team at Marcum, provides context.

Blockchain

Risk matrix breaks down problem areas of blockchain technology

2021-05-05T18:13:00+01:00By

The use of blockchain technology brings with it a number of risks that prudent auditing and accounting professionals must smartly manage. It’s all described in a new risk matrix released jointly by the ISACA, AICPA, and CIMA.

Under Armour

Under Armour to pay $9M to settle SEC accounting probe

2021-05-04T14:33:00+01:00By

Under Armour agreed to pay $9 million to settle charges brought by the SEC concerning accounting practices by the sports apparel company that rendered statements it made misleading.

Chambers_index

Former IIA CEO Richard Chambers partners with AuditBoard

2021-05-03T16:02:00+01:00By

Richard Chambers, former president and CEO of the Institute of Internal Auditors, has partnered with AuditBoard as a senior internal audit advisor.

SECBooks

SEC settles with 8 companies over untimely reporting disclosures

2021-04-30T19:27:00+01:00By

The Securities and Exchange Commission announced settlements with eight companies for incomplete reporting related to “not timely” form disclosures.

United States Belgium

PCAOB reaches cooperative agreement with Belgian counterpart

2021-04-21T16:28:00+01:00By

The PCAOB has added Belgium to its list of countries with which it has a cooperative agreement to exchange information concerning the oversight of audit firms.

AccountingUpdateFeature

FASB advances targeted updates to leases standard

2021-04-16T16:22:00+01:00By

The Financial Accounting Standards Board has tentatively ruled to move forward with a pair of updates to its leases standard aimed at certain sales-type leases and discount rates for lessees.

PCAOB

Ex-PCAOB risk officer files lawsuit alleging harassment, discrimination

2021-04-13T17:42:00+01:00By

The former chief risk officer of the PCAOB says she was subjected to a campaign of harassment and discrimination before she was unlawfully fired last year.

New York Capitol

New York law provides LIBOR fallbacks as rate nears end

2021-04-09T16:00:00+01:00By

A new law in New York provides contracts that reference LIBOR with a fallback provision and safe harbor once the benchmark interest rate permanently ceases to be published at the end of the year.

Statistic analysis

Accounting considerations for companies merging with SPACs

2021-04-08T19:55:00+01:00By

The Securities and Exchange Commission recently reinforced its focus on the importance of corporate governance and financial reporting by special purpose acquisition companies (SPACs).

AuditCoronavirus

IIA survey: COVID-19 impact on internal audit smaller than expected

2021-04-05T17:08:00+01:00By

The impact of the coronavirus pandemic on internal audit was not nearly as severe as it was for organizations overall, states a new report from the Institute of Internal Auditors.

Accounting fraud

How might U.K. mandate for audit to find fraud work in practice?

2021-04-01T18:35:00+01:00By

Experts weigh in on the hurdles to be overcome and clarifications needed if U.K. auditors are going to be mandated to detect and prevent fraud as spelled out in new proposals.

Financial reporting

Study: Financial services leads way in COVID-related CAMs

2021-03-31T17:39:00+01:00By

More than a quarter of companies citing COVID-19 in their critical audit matters filed with the PCAOB are part of the financial services industry, according to research from Audit Analytics.

Accounting

​FASB finalizes goodwill triggering event standard update

2021-03-31T15:32:00+01:00By

The Financial Accounting Standards Board announced the adoption of an accounting standards update that provides an alternative for goodwill triggering event evaluation.

Federal Reserve

Enforcement an option as LIBOR deadline nears

2021-03-29T16:43:00+01:00By

Examiners from the Federal Reserve are being encouraged to consider supervisory actions against firms not ready to stop issuing LIBOR-based contracts by Dec. 31.

Accounting

Five key going concern considerations for 2021 reporting

2021-03-29T12:54:00+01:00By

Evaluating potential going concern issues was a hot topic for companies and their auditors in 2020. With first-quarter 2021 reporting around the corner, Maria Murphy offers five key considerations to be thinking about.

ChinaUS

SEC seeking comment on new foreign audit oversight rules

2021-03-24T18:43:00+00:00By

The SEC is seeking comment on new submission and disclosure rules related to foreign public companies that are not allowing U.S.-based auditors to review their financial statements.

Cyber-security

Internal audit’s role in cyber-security testing: Where to start

2021-03-22T18:00:00+00:00By

Nathan Anderson, senior director of internal audit at McDonald’s, discusses ways internal audit can better answer management questions about cyber-risks and become a more independent cyber-security testing function overall.

United Kingdom

U.K. government proposals spell out Big Four breakup, new audit responsibilities

2021-03-18T16:14:00+00:00By

The U.K. government has unveiled proposals designed to end the Big Four accounting firms’ dominance of the region’s audit market while also making companies and executives more directly accountable—and liable—for failures in corporate reporting.

SEC

Och-Ziff ex-CFO fined $35K for role in bribery case

2021-03-17T19:36:00+00:00By

The former chief financial officer at then-Och-Ziff Capital Management Group has agreed to pay $35,000 in a settlement with the SEC for his role in the firm’s notorious bribery scheme.

Car dealership

FRC to investigate Deloitte over Lookers’ audits

2021-03-12T17:22:00+00:00By

The U.K. Financial Reporting Council has commenced an investigation into Deloitte over its audit work of car dealership chain Lookers.

Audit changes 2020

Audit client turnover 2020: EY ends Deloitte’s streak; PwC, KPMG lag behind

2021-03-10T18:36:00+00:00By

Ernst & Young and Deloitte each had net increases in new public company audit engagements in 2020, while Big Four peers PwC and KPMG saw net decreases, according to the latest annual study.

clock delay

FCA confirms Dec. 31 end date for LIBOR

2021-03-05T16:44:00+00:00By

The U.K. Financial Conduct Authority put the nail in the coffin of LIBOR, confirming the widely used benchmark interest rate will cease to be available in most forms at the end of this year.

ESGReporting

How audit can support increased ESG mandates

2021-03-04T17:11:00+00:00By

The Center for Audit Quality and American Institute of Certified Public Accountants released a new roadmap that provides tools for independent auditors to support companies in achieving their ESG reporting goals.

Accountingbestpractices

Study: Goodwill impairments drop in 2019; spike projected in 2020

2021-03-03T19:55:00+00:00By

Goodwill impairment recorded by U.S. public companies fell 10 percent from 2018 to 2019, according to Duff & Phelps’ latest study. An early look at 2020 figures suggests a big rise in next year’s results as a result of the pandemic.

Audit

FERF study: Average audit fees inch higher in 2019

2021-03-01T21:09:00+00:00By

In the 11th edition of its annual public company audit fee study, the Financial Education & Research Foundation reported an increase of 6 percent in average audit fees largely due to expanded scope.

Grant Thornton adds risk to chief compliance officer’s title

2021-02-26T15:15:00+00:00By Scuttlebutt

Grant Thornton appointed Beatrix Bernauer to serve as the firm’s first chief risk officer, in addition to her current role as chief compliance officer.

EY

EY Germany changes leadership in wake of Wirecard scandal

2021-02-25T20:14:00+00:00By

Hubert Barth, head of EY’s Germany practice for the past five years, will step down and take on a “new role at the European level” as the firm seeks to restore its tarnished reputation following its missteps leading up to the collapse of Wirecard.

KPMG

Former KPMG auditors suspended for improper conduct during college audit

2021-02-23T19:53:00+00:00By

Former KPMG Partner Christopher Stanley and Senior Manager Jennifer Stewart were suspended by the SEC for improper professional conduct during an audit of the now-defunct College of New Rochelle.

KPMG building

KPMG UK chair resigns over controversial pandemic remarks

2021-02-12T19:40:00+00:00By

KPMG UK Chairman Bill Michael has resigned after controversial remarks he made about the coronavirus pandemic during a virtual town hall meeting offended several employees and were subsequently made public.

woods

James Freis did the right thing at Wirecard … but why didn’t anyone else?

2021-02-12T18:21:00+00:00By

At the end of the sorry Wirecard saga, James Freis may be one of the very few former senior employees who can hold his head high, writes Martin Woods.

AdobeStock_315336035

FASB advances goodwill triggering event standard update

2021-02-12T17:51:00+00:00By

The Financial Accounting Standards Board ruled tentatively to move forward with and expand the scope of its proposed standard update regarding goodwill triggering events under Topic 350. The standard is expected to be finalized in March.

Nailedit1200x800

Video: Wirecard’s failings back in spotlight

2021-02-11T21:40:00+00:00By Compliance Week

Jaclyn Jaeger lauds two oil companies for raising the bar on ESG commitment in the industry, while Dave Lefort assesses new developments in the Wirecard saga that point to greater failures in the firm’s internal controls.

blackline 300x200

CPE Webcast: Advancing the audit despite disruption

2021-02-11T12:00:00+00:00Provided by

There’s no question that F&A teams have been disrupted by the ongoing pandemic. In fact, nearly half of respondents in a recent survey said that closing virtually with a distributed workforce impacts the audit and other third-party engagements.

PCAOB 2019 inspections Big Four

PCAOB 2019 inspection reports: Deloitte still tops; PwC deficiency rate rises again

2021-02-08T21:52:00+00:00By

Three of the Big Four audit firms—Deloitte, EY, and KPMG—improved their year-over-year deficiency percentage in the PCAOB’s 2019 inspection reports, while PwC’s deficiency rate increased for the third straight year.

SEChq

Former WageWorks CEO, CFO settle SEC accounting violation charges

2021-02-03T17:04:00+00:00By

The Securities and Exchange Commission charged two former executives of WageWorks with making false and misleading statements and omissions that resulted in the improper recognition of $3.6 million in revenue.

very good security 300x200

CPE Webcast: Building for SOC 2 compliance

2021-02-02T14:00:00+00:00Provided by

For many companies, SOC 2 Compliance can be an unexpected requirement to work with a big new client. This complex, time-consuming compliance effort is often much more costly than business leaders expect, and can easily lead to more hiring, delayed product launches, and slow business growth.

Anthony Pugilese

Incoming IIA chief Anthony Pugliese to prioritize technology, D&I

2021-02-01T14:00:00+00:00By

Compliance Week caught up with Anthony Pugliese, the incoming president and chief executive officer of the Institute of Internal Auditors, to discuss his plans for the future of the IIA and the internal audit profession at large.

visuallease300x200

Lease Accounting Solution Transition (LAST) Planner

2021-01-27T12:43:00+00:00Provided by

Did you rush to meet lease accounting requirements (ASC 842, IFRS 16) in time for the compliance deadline? You’re not alone.

J. Robert Brown to depart PCAOB board

2021-01-13T20:45:00+00:00By Scuttlebutt

The Public Company Accounting Oversight Board announced J. Robert Brown Jr. will conclude his service on the Board this month.

steotia

SEC Chief Accountant Sagar Teotia to depart

2021-01-13T16:41:00+00:00By

SEC Chief Accountant Sagar Teotia joins the growing list of senior officials at the agency set to depart amid the presidential transition to the Biden administration.

Accounting fraud

Common themes from financial statement fraud SEC enforcement actions

2021-01-12T18:33:00+00:00By

A new report from the Anti-Fraud Collaboration analyzes the most common financial statement fraud themes noted in SEC enforcement actions and offers insights to mitigate the top risk areas.

Audit

New IAASB standards tackle audit quality management

2021-01-04T20:08:00+00:00By

The International Auditing and Assurance Standards Board has issued a trio of new and revised standards intended to strengthen and modernize the way audit firms on an international level approach quality management.

SEChq

RPM, chief compliance officer to pay $2M for accounting violations

2020-12-28T15:01:00+00:00By

RPM International and its general counsel and chief compliance officer have agreed to a $2 million settlement with the SEC for accounting and disclosure rules violations relating to a prior DOJ investigation.

AccountingUpdateFeature

FASB proposes goodwill alternative for certain private companies, nonprofits

2020-12-22T18:44:00+00:00By

The Financial Accounting Standards Board proposed a standard update to provide an accounting alternative to the goodwill triggering event assessment for certain private companies and nonprofit organizations.

Auditcommunication

CAQ review: Little surprises in Year 1 of CAM reporting

2020-12-22T16:33:00+00:00By

The Center for Audit Quality released its review of the first year of auditor reports for over 2,000 large accelerated filers that included the PCAOB’s new critical audit matters requirements.

China

SEC, China react as Trump approves foreign audit oversight bill

2020-12-21T17:29:00+00:00By

President Donald Trump signed into law a measure that will kick publicly traded Chinese companies off U.S.-based exchanges if they refuse to allow U.S. regulators to examine their finances.

SEC

EY member firm fined $1.5M for failure to uncover $3B homebuilding fraud

2020-12-18T16:35:00+00:00By

A member firm of EY Global has been fined $1.5 million by the SEC to settle audit violations and improper conduct charges connected to a $3.3 billion accounting fraud committed by one of its customers.

Luckin Coffee

Luckin Coffee to pay $180M for accounting fraud

2020-12-17T19:44:00+00:00By

China-based Luckin Coffee has agreed to a $180 million penalty as part of a settlement with the U.S. Securities and Exchange Commission to resolve charges related to the coffee chain’s inflated-sales scandal.