The AICPA Conference on Current SEC and PCAOB Developments in Washington, DC concluded on Wednesday last week, its third day. The last day covered several sessions including International Reporting Matters, Non-GAAP Measures, the New Lease Accounting Rules, Cybersecurity, PCAOB Registration, Inspection and Enforcement Updates, Data Analytics, and Sustainability Reporting.
Non-GAAP measures was a hot topic at the conference and speakers noted that most of the SEC comment letters in this area related to the prominence of the Non-GAAP measure. The message was for preparers to review their Non-GAAP measures and ensure that GAAP is the highlight and the prominence.
The message from the panelists on the new lease accounting rules was to start the assessment and implementation process as early as possible. The panelists also stated that the definition of a lease has changed under the new standard so preparers need to ensure that they have identified all transactions that qualify as leases.
The sessions on data analytics and cyber security prove that the world is changing. Data Analytics can play a significant role in capturing and analyzing data for both preparers and auditors. While the Cyber Security risks are ever changing and evolving, companies need to be using unconventional controls in dealing with these threats.
Preparers and auditors both play a critical role in spearheading the initiatives of the SEC and PCAOB. Preparers must continue to focus on high-quality financial reporting through enhancing disclosures and ensuring appropriate design and effectiveness of ICFR. As auditors, we must continue to hold ourselves to the highest standard in conducting high quality audits with the goal of providing assurance to the capital markets.
Noted above are only a few highlights of day three of the conference. Below are links to the full text of remarks given by members of the SEC and the PCAOB.