The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) that improves guidance on the measurement of credit losses for accounts receivable and contract assets. The new guidance, which is optional, addresses challenges faced by stakeholders when applying Topic 326, Financial Instruments—Credit Losses, to current accounts receivable Read More
The Sarbanes-Oxley Act of 2002 (SOX) redefined corporate accountability by mandating transparency and oversight in financial reporting. Evaluating internal controls over financial reporting (ICFR) is at the core of SOX compliance, particularly Section 404. Entity-level controls (ELCs) are core to this: enterprise-wide mechanisms that influence governance, risk management, ethics, and Read More
A new report finds that companies still haven’t completely mastered SOX compliance. It finds that more than half reported an increase in time spent on SOX, even as they work to add automation to the process. The fourteenth annual Sarbanes-Oxley (SOX) Compliance Survey, conducted by global consulting firm Protiviti, finds Read More
The AICPA Auditing Standards Board issued a new Statement on Auditing Standards (SAS) that is intended to clarify its views on how auditors should determine which areas pose the most risks of material misstatement in an audit engagement. Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Read More
On Friday, the Securities and Exchange Commission announced the removal William Duhnke from the Public Company Accounting Oversight Board (PCAOB) without providing a reason for his dismissal in the official press release. The PCAOB regulates audits conducted on publicly traded companies. Board member Duane DesParte will serve as the acting Read More
With a large potential payout on the horizon for the Commodity Futures Trading Commission (CFTC), the Senate reached a bipartisan agreement to pass a bill that temporarily creates a separate account to pay for the agency’s whistleblower program, the Wall Street Journal reported. “The CFTC whistleblower program has become far Read More
A new survey finds that companies aren’t moving to advanced technologies in big numbers to address the difficult work of complying with the Sarbanes-Oxley Act (SOX). The survey also finds that nearly 20 years after SOX took effect, companies are spending more time and money to comply with the regulations. Read More
A new report issued by an independent U.K. committee convened to review just about every facet of the audit function—from internal controls to internal audit to the independent assurance function offered by the Big Four and others—is urging a complete overhaul of the audit process. The Brydon Report, issued today, Read More
Ever since Congress passed the Sarbanes-Oxley Act in 2002—a response to major accounting scandals at such companies as Enron, WorldCom, Adelphia, Tyco, and others—internal auditors have been wringing their hands over their role in assuring compliance with the complex law. SOX, as it has come to be known, created radical Read More
A new study finds that companies are increasingly putting internal audit in charge of Sarbanes-Oxley Act (SOX) internal controls compliance, rather than departments such as financial reporting or legal. The survey, conducted by the SOX & Internal Controls Professionals Group, finds that 46 percent of respondents report that internal audit Read More
