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ACCOUNTING AND SEC HEADLINES:

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Regulation S-K – SEC Chair Discusses Reforming Regulation S-K

SEC Chair Paul Atkins issued a statement indicating that he has “instructed the Division of Corporation Finance to engage in a comprehensive review of Regulation S-K.” The first step in this process took place last May 2024, when the SEC solicited public comments and held a roundtable on the executive compensation disclosure requirements contained in Item 402 of Regulation S-K. Chair Atkins indicates that the SEC has received over 70 unique comment letters and the SEC staff is in the process of evaluating these letters and preparing recommendations to the SEC for revisions to Item 402.

As a next step, the SEC staff is expected to focus on the other requirements of Regulation S-K. Chair Atkins welcomes and encourages members of the public to provide their views on how the SEC can amend Regulation S-K, with the goal of revising the requirements to focus on eliciting disclosure of material information and avoid compelling the disclosure of immaterial information. Chair Atkins asks stakeholders to submit comments as soon as possible and by no later than April 13, 2026.

A Closer Look – New Edition of A Closer Look Published

We have published a new edition of A Closer Look, The 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments. This new edition provides highlights of the 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments that was held in Washington, D.C. The major topics and recurring themes discussed during the Conference covered a number of important accounting, reporting, and auditing issues, many of which could be of interest to nonpublic companies as well as SEC registrants. They included the following:

• The importance of transparency and integrity of financial reporting, including investor protections and the role of the auditor in providing assurance and trust in financial reporting.
• The importance of internal control over financial reporting (ICFR), including the design and implementation of controls, and the important role of auditors have in testing the effectiveness of ICFR.
• Issues affecting audit quality in a changing and challenging business environment.
• The growing use of Artificial Intelligence and evolving technologies in the accounting and auditing professions.
• SEC regulatory priorities related to accounting and auditing.
• .The opportunities and risks associated with private equity investments in accounting firms
• PCAOB standard-setting, inspection, and enforcement.
• Accounting standard-setting.
• Attracting and retaining talent into the accounting and auditing profession.

A Look Forward at 2026 – New Edition of GAAP Update Service Published

We have published a new edition of the GAAP Update Service, Special Edition: 2026 - The Year Ahead. This new edition discusses the likely timeline for the issues currently on the FASB’s Technical Agenda and identifies issues that seem likely to affect standards setting in the near future.

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AUDITING AND INTERNAL CONTROL HEADLINES:

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Dealerships – New Edition of Knowledge-Based Audits, Preparations, Compilations and Reviews of Dealerships Published

We have published a new edition of Knowledge-Based Audits, Preparations, Compilations and Reviews of Dealerships. This publication is designed to help the auditor efficiently and effectively perform financial statement audits and, when applicable, audits of internal control over financial reporting, in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS), and preparations, compilations, or review engagements of nonpublic dealers.

This new edition incorporates professional standards issued through December 31, 2024, and auditing standards up to and including SAS No. 149, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors). It also contains methodology and workflow enhancements and other editorial changes. New audit program steps and practice aids have been added for crypto assets based on the AICPA 2024 non-authoritative guidance.

The preparation, compilation, and review related practice aids and tools in this new edition incorporate professional standards issued through December 31, 2024, up to and including SSARS No. 26, Quality Management for an Engagement Conducted in Accordance with Statements on Standards for Accounting and Review Services, and the AICPA Guide Preparation, Compilation and Review Engagements.

A Closer Look – New Edition of A Closer Look Published

As discussed above, we have published a new edition of A Closer Look, The 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments. This new edition provides highlights of the 2025 AICPA & CIMA Conference on Current SEC and PCAOB Developments that was held in Washington, D.C. The major topics and recurring themes discussed during the Conference covered a number of important accounting, reporting, and auditing issues, many of which could be of interest to nonpublic companies as well as SEC registrants. They included the following:

• The importance of transparency and integrity of financial reporting, including investor protections and the role of the auditor in providing assurance and trust in financial reporting.
• The importance of internal control over financial reporting (ICFR), including the design and implementation of controls, and the important role of auditors have in testing the effectiveness of ICFR.
• Issues affecting audit quality in a changing and challenging business environment.
• The growing use of Artificial Intelligence and evolving technologies in the accounting and auditing professions.
• SEC regulatory priorities related to accounting and auditing.
• .The opportunities and risks associated with private equity investments in accounting firms
• PCAOB standard-setting, inspection, and enforcement.
• Accounting standard-setting.
• Attracting and retaining talent into the accounting and auditing profession.

ICFR – New Edition of GAAS Update Service Published

We have published a new edition of the GAAS Update Service, Practice Issues and Questions & Answers Relating to AU-C Section 940, “An Audit of Internal Control Over Financial Reporting That Is Integrated with an Audit of Financial Statements.” This new edition discusses AU-C Section 940, which establishes requirements and guidance for auditors performing an audit of internal control over financial reporting (ICFR) that is integrated with an audit of financial statements (integrated audit).                 

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GOVERNMENT HEADLINES:

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Subsequent Events – New Edition of Governmental GAAP Update Service Published

We have published a new edition of the Governmental GAAP Update Service, GASB-105 Issued on Subsequent Events. This new edition provides a summary of the recently issued GASB 105.

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