Audit Committee Update: 21 Financial Reporting Disclosure & Control Tips for 2021

Weil, Gotshal & Manges LLP
Contact

As audit committees move into overdrive to review the 2020 annual reports on Form 10-K of calendar-year companies, in this Alert we offer “tips” drawn from recent Securities and Exchange Commission (“SEC”) rule changes, guidance, enforcement cases and staff comment letters. We also provide helpful insights for audit committees into the Public Company Accounting Oversight Board’s (“PCAOB”) views on how registered independent public accounting firms can deliver an effective integrated audit of issuer financial statements and internal control over financial reporting.

Under the Sarbanes-Oxley Act of 2002 amendments to the federal securities laws, audit committees of public companies are charged with overseeing each of the other two gatekeepers, the management preparers of financial statements and the accounting firms serving as independent auditors of those financial statements and related accounting controls. In 2020, the SEC and PCAOB delivered a carefully coordinated message to the triad of financial reporting “gatekeepers” – the audit committee, management, and accounting firms – that they must discharge their respective duties effectively to assure investors in the public markets of the accuracy, completeness and fundamental integrity of the SEC financial reporting system. The extraordinary pressures and uncertainties created by the COVID19 pandemic have already heightened the importance of audit committee oversight, as the work of all three gatekeepers is judged by a critical investing public. With the advent of a Democratically-controlled Congress and a new set of top regulators, we believe this critical scrutiny will only intensify.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weil, Gotshal & Manges LLP | Attorney Advertising

Written by:

Weil, Gotshal & Manges LLP
Contact
more
less

Weil, Gotshal & Manges LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.