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Financial Reporting and Regulatory Update

Second Quarter 2020

From the PCAOB

Addressing the coronavirus

As a follow-up to its posting on March 18, 2020, the PCAOB posted on May 11, 2020, an update on its operations in light of COVID-19. The release describes the activities of the PCAOB and the current impact that the coronavirus is having on operations. The PCAOB highlighted the following:

  • The 45-day relief period provided to audit firms to pause inspections activity has ended.
  • Enforcement and investigative efforts are continuing to the maximum extent possible.
  • Registration activities are continuing.
  • The board is continuing to meet virtually and vote on pending items.
  • Timing for returning to in-person meetings and events is being assessed.
  • Coordination efforts with the SEC and other regulators and governmental entities are continuing.

Additionally, on April 2, 2020, the PCAOB provided reminders for audits nearing completion.

Cryptoassets

On May 26, 2020, the PCAOB released a Spotlight paper, “Audits Involving Cryptoassets: Information for Auditors and Audit Committees,” that details the inspection observations related to use and disclosure of cryptoassets in financial statements. The document provides considerations for auditors as well as questions for audit committees to ask of their auditors relating to the holding of or transactions in cryptoassets that are material to the financial statements.

For more information contact Crowe.