FAF Trustees to Meet on February 15

The Financial Accounting Foundation (FAF), the trustee body with oversight responsibility of FASB and GASB, will hold a virtual meeting on February 15, according to its agenda. The event will be live-streamed for one hour to the public, from 11:55 AM to 12:40 PM. This will be the first of the organization’s four meetings for 2022. As usual, the meeting will hear updates from FASB Chair Richard Jones and GASB Chair Joel Black— typically a review of accounting standards and proposals that were published or will be published. Currently, among projects, FASB is in the process of setting its five-year technical agenda. The board is also working on post-implementation reviews (PIR) for broad standards on leases, revenue recognition, and current expected credit losses (CECL). Similarly, GASB has been working on major projects on revenue and expense recognition, the financial reporting model, and various other topics. The board is also conducting PIRs on standards on fair value measurement, leases, fiduciary activities, pensions, and postemployment benefits other than pensions.


ASB Makes Progress on Group Audits Project

During a virtual meeting held late last month, the AICPA’s Auditing Standards Board (ASB) made progress on its project related to group audits. The board is expected to vote on issuing an exposure draft on proposed AU-C Section 600, “Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors),” at its next meeting on March 9, 2022, according to Ahava Goldman, AICPA associate director for audit and attest standards. The ASB strives to converge its standards with those issued by the International Auditing and Assurance Standards Board (IAASB), which in December 2021 voted to issue a final standard that revises International Standards on Auditing (ISA) 600, Special Considerations, Audits of Group Financial Statements (Including the Work of Component Auditors). The forthcoming proposed standard will be based on ISA 600, but it “would continue to allow the group auditor to choose to make reference to the report of another auditor,” Goldman noted. “The ASB agreed with the approach taken in the proposed SAS, which defines such auditors as ‘referred-to auditors … who are not component auditors and are not members of the engagement team.’” A task force has been working on drafting the proposed audit standard.


PCAOB Seeks Candidates for New Advisory Groups

On January 31, 2022, the PCAOB said that it is forming two advisory groups: the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG), which replaces the Standards Advisory Group (SAG) established in March 2021. The PCAOB is seeking comments on the charter of the group in Release 2022-001, “Request for Public Comment: Advisory Groups—Draft Governance Frameworks.” At the same time, the board is seeking candidates to serve on the groups. The deadline for comments on the panels’ structure and nominations to serve on the groups is February 28. Nominations are open to new individuals as well as those who served on the board’s previous advisory groups. The PCAOB said that it expects to appoint members in early spring. “The effectiveness of our oversight depends on robust dialogue with key stakeholders, including the investor community, audit committee members, preparers and auditors of financial statements, and academics, among others” said PCAOB Chair Erica Williams in a statement. “Building on the success of the PCAOB’s past advisory groups, the IAG and SEIAG will provide us with opportunities to obtain key views and insights from regular engagement with stakeholders.”