This Financial Reporting Update highlights key developments and issues that are relevant to Finance and Accounting Professionals.
Financial Accounting Standards Board
On August 17th, the Financial Accounting Standards Board (FASB) issued its 2023 Investor Outreach Report on the FASB website.
“The FASB entered our 50th anniversary year focused on priority projects identified by investors and other stakeholders during our recent agenda consultation process, which we discussed in our 2021 FASB Agenda Consultation Report,” stated FASB Chair Rich Jones and Technical Director Hillary Salo in their opening letter. “We have advanced work on these projects, with many of the top investor priorities reaching important due process milestones.”
The report also details the addition of three new members and discusses the FASB’s continuing investor outreach efforts by noting the over 435 investor interactions in the year ended June 30, 2023.
The full version of the report can be found here.
Securities and Exchange Commission
On August 25th, the Securities and Exchange Commission (SEC) announced that it had granted an award of over $18 million to a whistleblower who provided vital information and assistance which led to a successful SEC enforcement action.
Having first reported the misconduct internally, the whistleblower then submitted information to the SEC which triggered an investigation. The whistleblower cooperated throughout the investigation by continually providing additional useful information and insight which ultimately saved the SEC valuable time and resources.
“Whistleblowers continue to play an essential role in assisting the agency in detecting misconduct and bringing securities law violators to justice,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Today’s whistleblower refused to turn a blind eye to the wrongdoing, reporting misconduct internally and then to the Commission.”
American Institute of Certified Public Accountants
On August 7th, the American Institute of CPAs (AICPA) and National Association of State Boards of Accountancy (NASBA) announced the launching of an innovative post-graduate program as a collaborating effort with the Tulane School of Professional Advancement (SoPA). The program is designed to offer a cheaper and more flexible path to achieving the 150-hour course credit requirement for becoming a licensed CPA.
The AICPA-NASBA initiative, titled the Experience, Learn and Earn (ELE) program, is designed to combine rigorous online education with practical hands-on professional experience through a participating accounting firm. Tulane SoPA is set to pilot the innovative program in January of the upcoming academic year, with plans to add other universities in short order.
Public Company Accounting Oversight Board
On August 11th, the Public Company Accounting Oversight Board (PCAOB) announced settled disciplinary orders sanctioning three audit firms for a failure to adhere to PCAOB reporting requirements. The violations were identified through a comprehensive review intended to uncover any potential instances of non-compliance with PCAOB regulations. The PCAOB continues its commitment to strengthen enforcement by employing these reviews against firms where violations of PCAOB standards may be present.
The following firms consented to the PCAOB’s disciplinary actions without admitting or denying the findings:
- BDO Taiwan – $35,000 civil money penalty and censure
- Jendrach Accounting and Professional Services – $25,000 civil money penalty and censure
- Moore MSLL Lima Lucchesi Auditores e Contadores Ltda. – $25,000 civil money penalty and censure
In addition, the Board required these firms to either enhance or adhere to previously revised policies and procedures regarding PCAOB reporting requirements.