This Financial Reporting Update highlights key developments and issues that are relevant to Finance and Accounting Professionals.
Financial Accounting Standards Board
On April 13th, the Financial Accounting Standards Board (FASB) announced the appointment of three new members to its Investor Advisory Committee (IAC).
The new members are:
- John DeVita, Principal and Portfolio Manager, Altrinsic Global Advisors, LLC
- John Helfst, Managing Director, 1919 Investment Counsel, LLC
- Minesh Patel, Senior Director and Sector Lead – US Leveraged Finance, S&P Global Ratings.
FASB chair Richard R. Jones stated, “We’re pleased to welcome John DeVita, John Helfst, and Minesh Patel to our Investor Advisory Committee. Their diverse backgrounds in investing will enhance the group’s robust discussions and its valuable input on how FASB standards can provide investors with information they will use in their capital allocation decisions.”
Securities and Exchange Commission
On April 26th, the Securities and Exchange Commission (SEC) announced it will host a virtual Conference on Emerging Trends in Asset Management. The inaugural conference will be hosted by the SEC’s Division of Investment Management on Friday, May 19.
Conference topics will include:
- Asset managers, corporate governance, and civic democracy;
- Private funds, investor protection, and industry concentration;
- Investment complexity, international effects, and outsourced services; and
- Retail investors, fund trends, and investment innovation.
The conference will take place from 10 a.m. to 5 p.m. on May 19, and will be open to the public via a live webcast at www.sec.gov and will also be available for later viewing on the Division of Investment Management webpage.
Public Company Accounting Oversight Board
On April 17th, the Public Company Accounting Oversight Board (PCAOB) inspectors released a new staff report which outlines their priorities for 2023 inspections.
PCAOB Chair Erica Williams states, “Increased deficiencies in 2021 inspections and increased comment forms in 2022 inspections revealed a troubling trend in audit quality, which we are tackling head-on in 2023. By staying ahead of new and emerging risks, our inspections plan will hold firms accountable and drive improvements in audit quality for investors.”
The 2023 inspection priorities outlined in this report include but are not limited to:
- Risk of fraud
- Auditing and accounting risks
- Risk assessment and internal controls
- Use of the work of other auditors
- Quality control (in particular talent retention and its impact on audit quality)