As 2015 was coming to a close, the AICPA Conference on Current SEC and PCAOB Developments brought together financial statement regulators, preparers, and auditors in Washington D.C. to discuss accounting, reporting, and audit practice issues. Keynote speaker, SEC Chairwoman Mary Jo White, along with other speakers and panelists discussed actionable steps for improving the U.S. financial reporting system.
We have compiled some of the highlights from the December conference here, along with some key takeaways that can help your bank move into 2016 with confidence.
Internal Control over Financial Reporting (ICFR)
The SEC continues to note that PCAOB inspection findings on the audit of internal controls may indicate problems with bank internal controls. Many of these internal control failures stem from non-routine transactions.
- Key Takeaway: For non-routine transactions, make sure your bank first evaluates your expertise, then develops and executes on a doable plan.
Restatements and SEC Consultations
Many financial reporting restatements occur due to debt/equity transactions, statement of cash flows classification and accounting for income taxes.
- Key Takeaway: As private equity and venture capital firms look to increase investments in 2016, debt/equity transactions could get even more complex. Carefully and consistently evaluate your reporting competencies.
Banks and other companies reach out to the SEC for consult on matters including accounting for M&A, revenue recognition, and segment reporting.
- Key Takeaway: Banks continue to face massive change. Be proactive about seeking input from experts and double check with regulators as needed.
For audit executives, the to-do list continues to grow, from cyber security to government regulations. Audit committees also must keep their focus on SEC and exchange listing requirements. Time, not expertise, is becoming more of an issue.
- Key Takeaway: Give your audit committee members the time necessary to serve.
As you move headlong into 2016, we hope these points will keep your bank on firm footing with solid reporting practices. If you have questions about regulations, audit requirements, or other financial tasks, the HORNE Banking team is here to help.
Join the conversation and receive updates of new posts