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SEC addresses securities transparency; PCAOB addresses audit concerns

October 16, 2023

The SEC recently adopted a series of rules and amendments aimed at strengthening transparency around securities in the capital market.

  • accounting and auditing

Why should CPAs understand ChatGPT?

October 14, 2023

Mfon Akpan, CGMA, DBA, an assistant professor of accounting at Methodist University, and Scott Dell, CPA, DBA, an assistant professor of accounting at Francis Marion University, explain why CPAs and other professionals can be left behind professionally if they don't spend time learning about tools such as ChatGPT. They talk about productivity gains, the competitive divide that could develop, and how, in the short term, more training is needed to fully harness generative AI.

  • accounting and auditing
  • business and industry
  • practice management
  • technology and cybersecurity

Pool of Accounting Graduates Continues to Shrink in U.S., AICPA Report Finds

October 12, 2023

The number of students earning U.S. postsecondary accounting degrees fell sharply in the 2021-22 academic year, according to a biennial American Institute of CPAs (AICPA) report on trends related to accounting graduation rates, the CPA Exam and hiring demand by accounting firms. Some 47,067 students earned a bachelor’s degree in accounting in the 2021-22 school year, down 7.8% from the previous year, according to 2023 Trends: A Report on Accounting Education, the CPA Exam and Public Accounting Firms’ Hiring of Recent Graduates. The number of students who earned a master’s degree in accounting, meanwhile, fell 6.4% to 18,238. In the previous Trends report, the comparative rates of decline were 2.8% and 8.4%, respectively.

  • accounting and auditing
  • career resources
  • practice management

FinCEN proposes BOI reports deadline extension for certain companies

October 06, 2023

Treasury's Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) on Wednesday that would extend the deadline for companies created or registered in 2024 to file their first beneficial ownership information (BOI) reports. The NPRM (RIN 1506-AB62) would provide 90 days for those companies to file initial reports rather than the original deadline of 30 days from the earlier of the date on which the company receives actual notice that its creation or registration has become effective or the date on which the secretary of state first provides public notice that the company has been created or registered.

  • accounting and auditing
  • business and industry
  • forensic accounting and fraud
  • practice management
  • advocacy - federal
  • boi

New PCAOB standard addresses confirmation in the audit

October 02, 2023

The PCAOB adopted a new standard relating to the auditor's requirements for the use of confirmation. Effective for financial statement audits for fiscal years ending on or after June 15, 2025, the standard will replace a 1991 AICPA standard adopted by the PCAOB on an interim basis shortly after the board's formation in 2003. The PCAOB first formally considered updating the standard in 2009.

  • accounting and auditing

AICPA releases quality management practice aid

September 29, 2023

Practitioners preparing for the new AICPA quality management (QM) standards now have access to a practice aid designed to help their cause. The free practice aid, Establishing and Maintaining a System of Quality Management for a CPA Firm's Accounting and Auditing Practice, is available in versions for sole practitioners and for small- and medium-sized firms.

  • accounting and auditing
  • advocacy - federal

GASB addresses disclosure and classification of capital assets

September 29, 2023

GASB issued a proposal Thursday that would establish requirements for certain types of capital assets to be disclosed separately for purposes of note disclosures.

  • accounting and auditing

New Law Raises Connecticut Public Charities Audit Threshold as of July 1, 2023

September 07, 2023

For Connecticut Public Charity registrations originally due after July 1, 2023, Connecticut Public Acts 23-99 and P.A. 23-98, effectively raise the audit threshold for charitable organizations (subject to registration) to gross revenues greater than $1,000,000 and allows for an audit or review for organizations with gross revenues between $500,001 and $1,000,000. Gross revenue is calculated excluding grants or fees from government agencies or revenue from funds held in trust for the benefit of the organization. Public Acts 23-98 and 99 state that, “For a financial statement [i.e., a charitable registration] that is initially due after July 1, 2023, a charitable organization shall include with the charitable organization's financial statement (A) an attestation that an audit report has been completed by a certified public accountant if the charitable organization had gross revenue in excess of one million dollars in the year covered by such report, or (B) an attestation that an audit or review report has been completed by a certified public accountant if the charitable organization had gross revenue in excess of five hundred thousand dollars but not more than one million dollars in the year covered by such report.” With the law effective July 1, 2023, the new provision generally applies to each Connecticut charitable organization subject to registration with a fiscal year ending August 31, 2022 or later. CPAs should consider alerting their not-for-profit clients of the new requirements. The chart below refers to the financial documents required for renewal applications.

  • accounting and auditing
  • not-for-profit
  • advocacy - state

ESOP exploration: Can the ‘new' ownership model age well?

September 05, 2023

Most CPA firms are steeped in the partner model of ownership, but one of the country's largest firms recently opted to break with that model by establishing an employee stock ownership plan (ESOP).

  • accounting and auditing
  • practice management

Navigating ESG: Strengthening Governance for Long-Term Success

August 29, 2023

Companies should develop a governance infrastructure to identify, report, and monitor ESG-related risks and opportunities.

  • accounting and auditing

Corporate Transparency Act/Beneficial Ownership Information Reporting — Risk Management Considerations for CPA Firms

August 22, 2023

The Corporate Transparency Act (“CTA”) was enacted January 1, 2021, as part of the National Defense Authorization Act, representing the most significant reformation of the Bank Secrecy Act and related anti–money laundering rules since the U.S. Patriot Act. The CTA is intended to address and guard against money laundering, terrorism financing, and other forms of illegal financing by mandating certain entities (primarily small and medium size businesses) to report “beneficial owner” information to the Financial Crimes Enforcement Network (“FinCEN”).

  • accounting and auditing
  • business and industry
  • practice management
  • boi

ESG's Biggest Miss: Supply Chain Visibility

August 11, 2023

As ESG efforts gain traction, they may be distracting companies from other social impact issues, like the use of slave labor in supply chains.

  • accounting and auditing
  • business and industry

CTCPA Among State Societies Requesting Department of Homeland Security Recognize Accounting as STEM

August 02, 2023

On August 1, the AICPA and all 54 State CPA Societies, including CTCPA, sent a letter to the Department of Homeland Security (DHS) requesting DHS recognize accounting under the “T” for Technology in Science Technology Engineering Math (STEM) education.

  • accounting and auditing
  • career resources
  • technology and cybersecurity
  • press room

Quality management standards: How to identify risks and design responses

July 18, 2023

In June 2022, the AICPA's Auditing Standards Board (ASB) and Accounting and Review Services Committee (ARSC) issued four interrelated final standards on quality management intended to clarify and improve existing quality processes for audit and attest engagements.

  • accounting and auditing

Is audit really that hard?

July 17, 2023

Philip Fisher takes a look at the FRC's annual review of audits and finds little to offer comfort. Is auditing really that difficult?

  • accounting and auditing

Sustainability Still Extrinsic to Many Companies' Cultures

July 17, 2023

But progress is being made in laying the strategic groundwork for embedding sustainability into organizations’ DNA.

  • accounting and auditing
  • business and industry

Financial Accounting Foundation Issues 2022 Annual Report - FASB 50th Anniversary Edition

July 12, 2023

The Financial Accounting Foundation (FAF) today posted its 2022 Annual Report to its website. The report is available as a printable PDF file and as an enhanced digital version.

  • accounting and auditing

4 AICPA & CIMA leaders discuss global sustainability standards

July 11, 2023

"A new frontier for accountancy." Those were the words of Jeremy Osborn, FCMA, CGMA, Global Head of ESG at AICPA & CIMA, a couple of days after the International Sustainability Standards Board issued the first two standards aimed at creating a global baseline for sustainability reporting.

  • accounting and auditing

Historic global standards for sustainability reporting released

July 10, 2023

In a milestone moment for the creation of a global common language for sustainability reporting, the International Sustainability Standards Board (ISSB) on Monday issued its first two standards. IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2, Climate-related Disclosures have an effective date of Jan. 1 for some portions, pending adoption in more than 140 jurisdictions worldwide. IFRS S1 features a global baseline for reporting requirements on the disclosure of sustainability-related risks and opportunities. IFRS S2 features reporting requirements specific to climate-related disclosures, in concert with the reporting framework established by IFRS S1.

  • accounting and auditing
  • business and industry

Historic global standards for sustainability reporting released

June 26, 2023

https://www.journalofaccountancy.com/news/2023/jun/historic-global-standards-sustainability-reporting-released.html

  • accounting and auditing