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Increasing the value of the auditor’s report – Oversight board considers changes
August / September 2014
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 986
Abstract: The Public Company Accounting Oversight Board (PCAOB) is exploring ways to increase the value of the auditor’s report to investors and other financial statement users. It recently issued a proposal that would require auditors to report “critical audit matters,” evaluate certain information outside the financial statements and offer information about auditor tenure. However, commenters have registered concerns regarding audit scope expansion, breach of confidentiality, investor confusion and legal liability. This article discusses these issues and notes that, whatever the final standards look like, they’ll have a huge impact on financial reporting and may affect a company’s ability to raise capital. A sidebar looks at whether there’s a correlation between audit tenure and audit quality.
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Fair disclosure: How to protect your company against Reg FD liability
April / May 2014
Newsletter: Public Company Insights
Price: $225.00, Subscriber Price: $157.50
Word count: 986
Abstract: In 2000, the SEC adopted Regulation FD (fair disclosure — “Reg FD”), which prohibits public companies from selectively disclosing material nonpublic information to analysts, investors and others. To ensure compliance with Reg FD and to protect themselves against significant monetary penalties, companies need to develop a comprehensive disclosure policy. This article explains when Reg FD does and doesn’t apply, acceptable methods of making information public, and developing a written policy. A sidebar offers a list of information and events that are likely to be considered material and that companies should review carefully.