PCAOB to consider adopting new auditor’s reporting standard (May 24, 2017) – Journal of Accountancy (@AICPA_JofA)

The PCAOB is considering adopting a new standard that would require auditors to report clearer information in the auditor’s report, specifically related to “critical audit matters,” which were outlined in the proposal. While this change was in the original proposal, this newest re-proposal includes criteria to help teams determine when an audit matter is critical. The Executive Director of the Center of Audit Quality stated that including too many issues in a report would minimize the significance of the most important matters. By defining the criteria, auditors would know exactly what needs to be included in their reporting.

How It’s Relevant: In the PCAOB proposal from May 11, 2016, the board included criteria to help identify “critical audit matters” to their draft of the new standard. Disclosing these critical audit matters would provide audit-specific reporting guidance about particularly complex, subjective, and challenging aspects of the audit. Financial statement readers would be able to identify questionable topics found during the audit more easily since this new standard would limit the number of relevant matters. More guidance will hopefully lead to less judgement calls, and a more streamlined presentation in the financial statements.

Japan moves toward IFRS (May 25, 2017) – Accounting Today (@AccountingToday)

Japan’s Financial Accounting Standards Foundation reaffirmed their commitment to move towards IFRS and global accounting standards. Approximately 30% of public companies in Japan have adopted IFRS since they received the option to use the international standards in 2010. They currently can choose between IFRS, Japanese GAAP, or U.S. GAAP.

How It’s Relevant: The global movement towards IFRS is evident as more countries decide to adopt the standards. IFRS is required for 116 jurisdictions, and there are many other countries have the option to use IFRS. The fact that 30% of Japanese publicly traded companies have chosen to implement IFRS in such a short amount of time is proof that this is the direction companies are taking. It is more important than ever to be bilingual in both U.S. GAAP and IFRS. Our IFRS Update Course is a great tool to become well versed in the standards that are prevalent worldwide.

Data Mining to Find Tax Cheaters (May 25, 2017) – Bloomberg Businessweek (@BW)

More than 80 banks in Switzerland gave the U.S. information related to bank accounts of people attempting to hide their money. The account numbers and names of clients were not released due to privacy laws in Switzerland. However, the maximum account values, opening and closing dates, and money flows of the accounts can be extremely useful when combined with other information. The U.S. government is hot on the trail!

How It’s Relevant: Tax evaders are always going to try to find ways to hide money from the U.S. government. Back in 2009, the IRS provided an amnesty deal to individuals with offshore accounts. Not disclosing their assets during that movement was risky, and these “account migrators” or “leavers” often move their money to different banks and countries to avoid detection. What is worse is when individuals are counselled by lawyers and financial advisors as to where to move their assets. It’s a real question of ethics on the part of the both the professional and individual!

The One Personality Trait All CPAs Share (May 26, 2017) – AICPA Insights (@AICPANews)

No matter their backgrounds, Patrick B. Lee believes all CPAs have one characteristic that unites us all: drive! CPAs tend to focus passionate energy in all aspects of their lives and strive for excellence. Logically thinking, anyone who received the CPA credential must be highly motivated considering the challenging nature of the exams!

How It’s Relevant: Reading this article certainly hits home for many of us. Maybe it was your upbringing, or a life event that stimulated your motivation. Whether you consider it a blessing or a curse, when you dedicate yourself, you are all-in and continually look for a challenge! Personally, I believe it is a trait that gets us the most out of life and I wouldn’t change it. We are currently looking for highly motivated CPAs to join our amazing team here at GAAP Dynamics! Check out our career page to learn more.

Disclaimer
This post is published to spread the love of GAAP and provided for informational purposes only. Although we are CPAs and have made every effort to ensure the factual accuracy of the post as of the date it was published, we are not responsible for your ultimate compliance with accounting or auditing standards and you agree not to hold us responsible for such. In addition, we take no responsibility for updating old posts, but may do so from time to time.