Naming the Lead Auditor – Follow Up Study

A recent study raises doubt that Rule 3211, Auditor Reporting of Certain Audit Participants, has produced the intended benefits. The Public Company Accounting Oversight Board (PCAOB) issued the rule at the end of 2015. It requires accounting firms to identify the name...

How to Define Materiality

Defining “materiality” The concept of materiality is used to determine what’s important enough to be included in — and what can be omitted from — a financial statement. In late October, the Auditing Standards Board (ASB) of the American Institute of Certified Public...

Avoiding New Lease Accounting Rules

Debt-strapped private companies have been exploring ways to avoid having to use the lease accounting rules for new contracts. Why? Some fear that implementing the guidance would cause them to violate loan covenant agreements with lenders that limit the amount of...

Protecting elderly from investor exploitation

In October, the SEC held a roundtable to help raise awareness about exploitation against a particularly vulnerable group of investors — the elderly. Older investors tend to lose more money to fraud scams and have less time to recover than younger people. Educating the...

How to measure the fair value of equity-based awards

Cash-strapped start-ups and high growth firms often award stock options and other forms of equity-based compensation to attract and retain skilled employees. These awards can also provide incentives for employees to boost performance and add value. But there’s a...