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Reflections on the End of a Turbulent Year and Selected Considerations for 2021

With 2021 now upon us, companies, auditors and audit committees are gearing up for another annual reporting season, coming off of one of the more turbulent years in recent history, which included a significant number of...more

SEC Adopts Long-Awaited Amendments to Modernize Shareholder Proposal Rule

The Securities and Exchange Commission (SEC) has adopted amendments to the shareholder proposal rule – Rule 14a-8 under the Securities Exchange Act of 1934. The long-awaited changes largely track the SEC’s November 5, 2019...more

SEC Refreshes Its Business, Legal Proceedings and Risk Factor Disclosure Requirements

The business world has changed a lot in the last three decades, and, as a result of recent amendments to Item 101 of Regulation S-K, the description of a company’s business included in registration statements and periodic...more

PCAOB Shares Insights on Its Conversations With Audit Committee Chairs

Last week, the Public Company Accounting Oversight Board shared additional insights regarding its latest conversations with audit committee chairs – Conversations with Audit Committee Chairs: COVID-19 and the Audit (the...more

SEC Shares Additional COVID-19 Disclosure Considerations

The Securities and Exchange Commission Division of Corporation Finance released CF Disclosure Guidance: Topic No. 9A and SEC Chief Accountant, Sagar Teotia, issued a Statement on the Continued Importance of High-Quality...more

AICPA Releases New COVID-19 Checklist of “Essential Considerations” for Audit Committees

The Association of International Certified Professional Accountants (AICPA) has released an Audit Committee Checklist for COVID-19 that provides questions  for audit committee members to consider as they perform their...more

Keeping High-Quality Financial Reporting in Focus

As the novel coronavirus (COVID-19) continues to impact the economy, regulators are keeping high-quality financial reporting squarely within their focus. In a public statement last week, Securities and Exchange Commission...more

SEC Reduces ICFR Burdens for Smaller Companies

Last week, amidst the focus on the coronavirus, the Securities and Exchange Commission made progress on its short-term rulemaking agenda by amending the definitions of “accelerated filer” and “large accelerated filer.” The...more

Securities Law Considerations Related to the Coronavirus

Earlier this week, the Securities and Exchange Commission issued an Order granting conditional relief from certain obligations under the federal securities laws for companies facing challenges as a result of the current...more

SEC Shares Best Practices With Audit Committees

The Securities and Exchange Commission recently released a Statement highlighting eight areas that audit committees should focus on this reporting season. Penned by SEC Chairman Jay Clayton, Division of Corporation Finance...more

PCAOB Offers Insights from Conversations with Audit Committee Chairs

In support of its commitment to increased transparency, the Public Company Accounting Oversight Board recently released Conversations with Audit Committee Chairs: What We Heard & FAQs (the “Summary”), a summary of...more

Sixth-Annual CAQ Audit Committee Transparency Barometer Shows Mixed Trends in Voluntary, Enhanced Audit Committee Disclosures

Earlier this month, the Center for Audit Quality (CAQ) and Audit Analytics released their sixth-annual Audit Committee Transparency Barometer report.  Similar to prior years, the groups acknowledge “progress on the...more

Another Reminder from Delaware About the Duty of Oversight

Following this summer’s much publicized decision by the Delaware Supreme Court in the Marchand v. Barnhill (Blue Bell Creameries) case, the Delaware Court of Chancery’s holding in In re Clovis Oncology, Inc. Derivative...more

SEC Division of Corporation Finance Realigns Disclosure Program

On Friday, the Securities and Exchange Commission’s Division of Corporation Finance announced big changes in the internal structure of its disclosure program. While not a regular occurrence, such reorganizations happen...more

Sounding the Bell for Proactive Risk Oversight

The Delaware Supreme Court recently sounded a warning bell for directors, reminding that as part of their duty of loyalty, they “must make a good faith effort to implement an oversight system and then monitor it.” The case...more

PCAOB Continues to Expand CAMs Resources

Earlier this month, the Public Company Accounting Oversight Board released additional resources regarding its new Critical Audit Matters (CAMs) disclosure requirement, with the latest resources targeted to audit committees...more

Emails and Texts Could Constitute Corporate Books and Records

Directors, corporate secretaries and company counsel must be mindful of good corporate housekeeping practices involving the maintenance of corporate books and records. Earlier this year, a handful of Delaware court opinions...more

Regulators Address the 2019 Baruch College Financial Reporting Conference

Always a fertile source of regulatory perspective, this year’s Baruch College Financial Reporting Conference featured a future-oriented theme in remarks by Chief Accountant of the Securities and Exchange Commission Wesley...more

CAQ Expands Library of Resources for Audit Committees

Earlier this month, the Center for Audit Quality (CAQ) further expanded its resource library for audit committees by refreshing its External Auditor Assessment Tool. Consistent with the prior version, which was updated in...more

Recent Enforcement Actions Underscore Importance of Timely Remediating Material Weaknesses in ICFR

Earlier this week, the Securities and Exchange Commission announced that it had settled charges against four public companies for failing to maintain internal control over financial reporting (ICFR) over the course of seven...more

PCAOB Chair Highlights Plans for Enhanced Audit Committee Engagement

Last week, PCAOB Chairman William Duhnke delivered a keynote speech at the American Law Institute’s Accountants’ Liability 2018 Conference in Washington DC, in which he described recent efforts and future plans for the PCAOB...more

SEC Cautions Issuers to Consider Cyber Threats When Devising and Maintaining Internal Accounting Controls

Yesterday, the Securities and Exchange Commission released an investigative report regarding its investigation into whether nine public companies that were victims of cyber-related frauds violated federal securities laws by...more

ISS Annual Policy Survey Seeks Input Regarding Auditors and Audit Committees

Earlier this week, proxy advisory firm Institutional Shareholder Services Inc. (ISS) launched its Annual Policy Survey, which solicits responses from institutional investors, companies, corporate directors and other market...more

CAQ Releases New Tool for Upcoming CAMs Disclosure

Earlier this week, the Center for Audit Quality released Critical Audit Matters: Key Concepts and FAQs for Audit Committees, Investors, and Other Users of Financial Statements. The tool builds upon the CAQ’s December 2017...more

SEC Chief Accountant Addresses 2018 Baruch College Financial Reporting Conference

In a speech delivered at last week’s 2018 Baruch College Financial Reporting Conference, SEC Chief Accountant Wes Bricker discussed objectives of financial reporting and its importance to the markets. Mr. Bricker revisited...more

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