Financial Reporting and Regulatory Update

Third Quarter 2021

From the CAQ

Current requirements for climate-related considerations

The Center for Audit Quality (CAQ), on Sept. 9, 2021, releasedAudited Financial Statements and Climate-Related Risk Considerations,” which provides information on the direct and indirect impacts of climate-related risks on financial statements and audits. As a foundation for preparing for upcoming regulatory changes, the document explores the current requirements under U.S. GAAP and PCAOB auditing standards for addressing climate-related risks and disclosures.

ESG reporting and assurance across S&P 500 companies

On Aug. 9, 2021, the CAQ released summary observations of the nature and extent, including any assurance obtained, of publicly available ESG reports using the most recently available data for S&P 500 companies. The summary provides additional observations focused on S&P 100 companies.