The Public Company Accounting Oversight Board: Best Practices for Compliance in 2018
The Public Company Accounting Oversight Board (PCAOB), “a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports,” has published its Staff Inspection Brief providing information on the main areas of its inspection. Among the key areas of focus are the preparation for new accounting standards and compliance with new transparency rules. The Board will also target financial reporting areas requiring significant judgment.
Furthermore, as the Board adopts a new auditor reporting standard, potential impacts on auditor’s PCAOB compliance should be expected. Although the new standard is still subject to SEC approval, public companies and their audit committees should start discussing their approach in warding off potential compliance risks and loopholes.
In this LIVE Webcast, a panel of distinguished professionals and thought leaders will help firms understand the important aspects of this significant topic. They will provide an in-depth discussion of the recent trends and developments relating to auditor compliance with PCAOB rules and standards. Speakers will also offer best compliance practices in light of the key areas of focus for the PCAOB.
Key topics include:
- Recent Trends and Developments
- Main Areas of Focus for the PCAOB
- The New Auditor Reporting Standard
- Notable Cases
- Best Compliance Practices
Mikhail B. Pevzner, Professor
University of Baltimore
Economic Perspective on the Expected Impact of the New Auditor Report (“Auditor Reporting Model/aka ARM”).
- The new ARM includes items that are largely non-controversial
- The two most controversial elements of new ARM
Jocelyn A. Villanueva, Partner
Berkowitz Oliver LLP
- Litigation Overview
- venue: federal court; state court; government investigation; professional board
- typical context: failed entity (underlying client); stock drop; asset write down
- who is the Plaintiff/Claimant: underlying client; investors; regulator
- Discovery/Investigation Process
- process starts with document production: request for work papers and electronic files; older matters with hard copy work papers; privilege issues (attorney client and other)
- and next, depositions: “personalities in the room”; emotional aspect; individual who wants to tell his/her story; videotape
- challenge of describing accounting/audit issue to the Court: basic vocabulary, concepts; assets, liabilities, income; financials are the responsibility of Company; audit is in connection with ye financials; not the same for quarterly review
- New Auditor Report (AS 3101)
- again, from perspective of the litigator
- context: thoughts about the previous report (unqualified opinion); financials are the responsibility of management; audit not intended to provide absolute assurance; reflects professional judgment
- new report and key concepts: auditor tenure, CAM
- what’s the big deal ? still not absolute assurance, but does the extra disclosure raise questions unnecessarily: (i) about opinion on the financial statements overall ; or (ii) about those specific issues raised in the CAM’s ? ; and, does this info really help investors ?
- again, consider litigation context: the litigation environment;: contingency fee awards; litigation funding; COST, COST, COST (to underlying client) ; RISK, RISK, RISK
- quick war stories/closing thoughts
Raphael Larson, Partner
DLA Piper LLP (US)
PCAOB Enforcement Best Practices
- Tips for avoiding follow-on enforcement investigations when subject to a PCAOB inspection
- Best practices for handling an enforcement investigation once
- Informal investigation strategies and practices
- Formal investigation strategies and practices
- Interaction with enforcement staff
- Oral communications
- Written submissions
- Tips for handling a disciplinary proceeding
- Overview of a disciplinary proceeding
- Strategic considerations of litigating vs. settling
- Likely 2018 Enforcement Priorities and Trends
- Small firm priorities
- Big firm priorities
- Impact of recent events on Enforcement:
- New Board
- KPMG Inspection Scandal
Who Should Attend:
- Chief Accounting Officers
- Account and Audit Preparers
- Internal Auditors
- Investment Advisers
- Chief Compliance Officers
- Executive Officers
- Finance Lawyers
Jocelyn Villanueva’s practice focus is in complex commercial litigation, including accountant and professional liability, employment, ERISA denial of benefits litigation and class action defense. She manages and executes all aspects of litigation from the initial pleadings, to expert discovery and through trial and appeals. She has successfully tried cases in federal and state courts and handled regulatory/enforcement matters before government agencies and state professional boards.
Jocelyn Villanueva’s practice focus is in complex commercial litigation, including accountant and professional liability, employment, ERISA denial of benefits litigation …
Professor Pevzner has joined the University of Baltimore's Merrick School of Business as an Associate Professor and EY Faculty Chair in August 2013 where he teaches primarily in auditing and financial reporting areas. Professor Pevzner has been a co-holder of Yale Gordon Chair in Teaching Excellence during 2013-16 academic years. Prior to coming to Merrick, he was an Assistant Professor of Accounting at George Mason University.
Professor Pevzner specializes in empirical capital markets/empirical auditing research. He is also interested in international finance and accounting issues, in particular, in how cultural dimensions (e.g. trust and civic cooperation) affect investors' perception of accounting information and accounting and finance decision making. Since 2007, Professor Pevzner has published 13 research articles in the Journal of Accounting Research, Journal of Financial Economics, Contemporary Accounting Research, Journal of Financial and Quantitative Analysis, Auditing: Journal of Practice and Theory, Accounting Horizons, Journal of Accounting and Public Policy, International Journal of Accounting, Auditing, and Performance Evaluation, and in the Strategic Finance Magazine.
During 2011-16 Professor Pevzner has served on the Standards Committee of the Auditing Section of AAA (during 2012-13 as a chair) where he actively participated in a drafting of nine comment letters on issues related to auditing policy making (such as PCAOB and IAASB proposals). These comment letters have so far been published in Current Issues in Auditing. Professor Pevzner also represented the American Accounting Association at the International Ethics' Standards Board of Accountancy's Round-table on Noncompliance with Laws and Regulations in July 2014.
During 2016-17 academic year, Prof. Pevzner served as a Visiting Academic Fellow at the Professional Practice Group of the Office of Chief Accountant (OCA) in the U.S. Securities and Exchange Commission (SEC). While at the SEC, Prof. Pevzner provided assistance with the oversight of the economic analyses of auditing standards proposed by Public Companies Oversight Board, assisted with various internal research projects, and served as OCA's point of contact with the academic and university groups.
Professor Pevzner has joined the University of Baltimore's Merrick School of Business as an Associate Professor and EY Faculty Chair …
Raphael Larson focuses his practice on the representation of US and international accounting firms and accountants in connection with regulatory and enforcement matters before the Securities and Exchange Commission, the Public Company Accounting Oversight Board (PCAOB) and other regulatory and licensing bodies, as well as in federal and state court litigation. Before joining DLA Piper in April 2017, Raphael was a member in the PCAOB's Division of Enforcement and Investigations for more than 12 years, most recently serving as Associate Director.
Raphael also represents a variety of other entities in financial statement and securities-related matters. He has experience in corporate governance, securities regulation, commercial and civil litigation, due diligence and fraud matters
Raphael Larson focuses his practice on the representation of US and international accounting firms and accountants in connection with regulatory …
Print and review course materials
Method of Presentation:
On-demand Webcast; Group-Internet Based
Experience in Public Accounting
NY Category of CLE Credit:
Areas of Professional Practice
NASBA Field of Study:
Accounting - Technical
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About University of Baltimore
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