OSC Contacts Audit Firms for Information About Internal Policies and Procedures

The Ontario Securities Commission (OSC) announced September 23, 2022, that it will be making targeted inquiries to certain public accounting firms that conduct audits of Ontario reporting issuers.

A press release issued the same day said that “as a result of ethical violations identified by regulators in Canada and other jurisdictions, the OSC will request specific information about audit firms’ internal policies and procedures. The scope of this review does not presently include individual audits of reporting issuer financial statements previously filed with the OSC.”

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How Finance and IT Can Collaborate for Growth

A September 15 article, written by Adam Zaki, in CFO says that that “When [finance and IT] work together to evaluate the business case for a new investment, it ensures the CFO and the rest of the finance can provide strategic advice and act as more than just the budget gatekeeper.”

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Are You Telling a Story with Data?

A September 13, 2022, article in FM Financial Management, written by Bernard Marr, says that success as an accountant often lies in being able to "speak" finance to different areas and levels of the business. “In today's data-driven business world, this essentially means being able to communicate data.”

What's the best way to communicate data to any audience? Marr suggest turning it into a story.

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IASB Publishes Proposals to Update Its Accounting Standard for Small and Medium-Sized Entities

 

The International Accounting Standards Board (IASB) of the IFRS Foundation recently published proposals to update the IFRS for SMEs Accounting Standard to reflect improvements made to full IFRS Accounting Standards, while keeping the Standard suitable for small and medium-sized entities.

The IASB’s proposals include updating the principles of the Standard to align to those of The Conceptual Framework for Financial Reporting issued in 2018 and simplified requirements based on IFRS 13 Fair Value Measurement and IFRS 15 Revenue from Contracts with Customers.

The IASB is also proposing to update the standard for new requirements in IFRS 3 Business CombinationsIFRS 9 Financial InstrumentsIFRS 10 Consolidated Financial Statements and IFRS 11 Joint Arrangements. The proposed updates include other improvements made to full IFRS Accounting Standards since the second edition of IFRS for SMEs Accounting Standard was published in 2015.

The proposals reflect feedback on the Request for Information published in 2020 as part of its Second Comprehensive Review of the Standard and the advice from the IASB’s SME Implementation Group. Stakeholders provided input on the framework for updating the Standard together with their views on whether and how the IASB should propose amendments to the Standard.

Andreas Barckow, Chair of the IASB, said that: “The IFRS for SMEs Accounting Standard has always been about keeping accounting requirements as simple as possible and cost-effective for eligible companies. These proposed updates respond to the feedback on how to keep the Standard current while maintaining its simplicity.”

The deadline for comments is 7 March 2023.  Access the Exposure Draft and Basis for Conclusions

 
 
 
Strategic Courage in an Age of Volatility

An article in the August 29, 2022, issue of the McKinsey Quarterly says that today’s challenging environment requires business leaders to hone their edge in three critical areas: insights, commitment and execution. In these difficult times, the article says, “we see two types of business leader emerging. The first type adopts a cautious and defensive posture in dealing with the volatility and uncertainty. These leaders are hunkering down and concentrating on the threats here and now. Scenario planning, resilience preparation, balance sheet management, near-term efficiency drives, and careful inflation monitoring are core areas of their focus. These leaders are in a strategic ‘wait and watch’ mode as conditions unfold. In our experience, the majority of senior executives fall into this category.”

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SEC Division of Corporation Finance to Add Industry Offices Focused on Crypto Assets and Industrial Applications and Services

The Securities and Exchange Commission announced plans to add an Office of Crypto Assets and an Office of Industrial Applications and Services to the Division of Corporation Finance's Disclosure Review Program (DRP).

According to its press release, dated , September 9, 2022, the DRP has long had offices to review company filings by issuers. Now, the two new offices will join the seven existing offices that provide focused review of issuer filings and that are grouped by industry expertise to further the Division’s work to promote capital formation and protect investors. The DRP anticipates the new offices will be established later this fall.

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Auditing in the Crypto-Asset Sector: Existence of Crypto-Assets Held by Third Parties

The Canadian Public Accountability Board (CPAB) is concerned about the quality of evidence that some auditors are obtaining when auditing the existence of crypto-assets held in custody by third parties. In late August this year, CPAB released report that describes what auditors should be considering when auditing the financial statements of reporting issuers that use custodians to safeguard their crypto-assets.

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CPA Founding Partner

Chartered Professional Accountants of Canada (CPA Canada), one of the largest national accounting organizations in the world, has chosen to become a founding partner of ThinkTwenty20.