Current Issues and Concerns of the SEC and PCAOB

AuthorJack T. Ciesielski,Thomas R. Weirich
DOIhttp://doi.org/10.1002/jcaf.22215
Date01 November 2016
Published date01 November 2016
8
© 2016 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI 10.1002/jcaf.22215
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Current Issues and Concerns
of the SEC and PCAOB
Jack T. Ciesielski and Thomas R. Weirich
Current issues
facing the
Securities and
Exchange Com-
mission (SEC)
and Public Com-
pany Accounting
Oversight Board
(PCAOB) were
presented at the
American Institute
of Certified Pub-
lic Accountants
(AICPA)/SEC/
PCAOB Annual Confer-
ence inearly December 2015.
Accountants and auditors
use this conference to learn
of potential accounting pit-
falls, in matters relating to
SEC, PCAOB, and Financial
Accounting Standards Board
(FASB) issues. The conference
serves as an early warning sys-
tem for accountants and audi-
tors alike, as well as investors.
Understanding the concerns
of the SEC, the PCAOB, and
the FASB is useful in allocating
reporting and auditing efforts
where they are most needed,
hopefully allowing them to
avoid (or minimize) SEC and/
or PCAOB review comments.
VIEWS FROM THE TOP
The chief spokespersons
from the standard setters
(FASB and International
Accounting Standards Board
[IASB]) and the agencies (SEC
and PCAOB) spelled out their
views on the current and future
state of accounting, audit-
ing, and financial reporting.
Those visions were delivered
by SEC Chair Mary Jo White,
SEC Chief Accountant Jim
Schnurr, FASB Chair Russell
Golden, IASB Chair Hans
Hoogervorst, and PCAOB
Chair James Doty. Two main
themes highlighted this year’s
conference: the importance
of internal con-
trols anddisclosure
effectiveness.
SEC Chair
Mary Jo White,
thekeynote speaker,
reported on the
importance of inter-
nal controls, but it
was her remarks
about disclosure
effectiveness that
were of most inter-
est. There were some
important issues highlighted
of what is to come in her
remarks. “Various technical
changes related primarily to
financials statement disclo-
sures” sounded vague—but
it makes one wonder if this
is a forthcoming SEC effort
that might be spearheaded by
deploying a possible standard
that results from the FASB’s
exposure draft on disclosure
materiality. “Presentation of
information and tools on sec.
gov” sounds similarly vague,
which could result in an over-
haul of the SEC’s Electronic
Data Gathering, Analysis and
Retrieval (EDGAR) function,
which has not changed a lot in
This article highlights and summarizes current
issues identified by spokespersons of the SEC,
PCAOB, FASB, and IASB at the AICPA/SEC/PCAOB
Annual Conference held in December 2015 as
being significant. In addition, the authors add
some comments concerning potential actions by
these accounting and auditing standards–setting
bodies affecting company accountants, external
auditors, and investors. © 2016 Wiley Periodicals, Inc.
Editorial Review

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