AICPA

AICPA Proposes New Standard to Help Auditors Assess the Risks of Material Misstatement in Financial Statements
The proposed SAS also includes guidance for how auditors address the risks arising from the entity’s use of IT and maintain professional skepticism.
August 27, 2020

Press Release
Deloitte Foundation Donates $100,000 to AICPA Foundation to Support Accounting Doctoral Students
The Deloitte Foundation donated $100,000 to the AICPA Foundation to support the William (Bill) Ezzell Scholarship program, which provides funding to outstanding accounting PhD students.
August 26, 2020

CBO

Cost Estimate
H.R. 2791, Department of Veterans Affairs Tribal Advisory Committee Act of 2020
August 27, 2020
As ordered reported by the House Committee on Veterans’ Affairs on July 30, 2020

Cost Estimate
H.R. 5639, Chuck Osier Burial Benefits Act
August 27, 2020
As ordered reported by the House Committee on Veterans’ Affairs on July 30, 2020

Cost Estimate
H.R. 7623, Passport Backlog Elimination Act
August 27, 2020
As ordered reported by the House Committee on Foreign Affairs on July 29, 2020

Working Paper
Labor Market Effects of Tax Changes in Times of High and Low Unemployment: Working Paper 2020-05
August 27, 2020
The results of this analysis indicate that tax changes have significant effects on labor market outcomes, but those effects vary depending on the state of the economy at the time a tax change is implemented.

Report
The Potential Costs of Expanding U.S. Strategic Nuclear Forces If the New START Treaty Expires
August 25, 2020
CBO examined what the costs would be if the New START Treaty expired in February 2021 and the United States increased its nuclear forces to the levels specified in the Moscow, START II, or START I treaties, considering two approaches for each.

GAO

Retirement Security:
DOL Could Better Inform Divorcing Parties About Dividing Savings
GAO-20-541:Published: Jul 31, 2020. Publicly Released: Aug 28, 2020.

2020 Census:
Recent Decision to Compress Census Timeframes Poses Additional Risks to an Accurate Count
GAO-20-671R:Published: Aug 27, 2020. Publicly Released: Aug 27, 2020.

Export-Import Bank:
Status of End-Use Monitoring of Dual-Use Exports as of August 2020
GAO-20-688R:Published: Aug 27, 2020. Publicly Released: Aug 27, 2020.

Native American Youth:
Agencies Incorporated Almost All Leading Practices When Assessing Grant Programs That Could Prevent or Address Delinquency [Reissued with revisions on Aug. 27, 2020.]
GAO-20-600:Published: Aug 6, 2020. Publicly Released: Aug 6, 2020.

Management Report:
Improvements Needed in Controls over the Processes Used to Prepare the U.S. Consolidated Financial Statements
GAO-20-586:Published: Aug 25, 2020. Publicly Released: Aug 25, 2020.

IASB

28 August 2020
Meet the new Board member: Zach Gast

28 August 2020
Work plan updated

27 August 2020
IASB completes response to IBOR reform with amendments to IFRS Standards

IRS

Guidance issued to implement Presidential Memorandum deferring certain employee Social Security tax withholding
IR-2020-195, August 28, 2020 — The Department of Treasury and IRS today issued guidance implementing the Presidential Memorandum issued on Aug. 8, 2020, allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount.

IRS approves temporary use of e-signatures for certain forms
IR-2020-194, August 28, 2020 — To protect the health of taxpayers and tax professionals, the Internal Revenue Service today announced it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically.

IRS accepting applicants for the Compliance Assurance Process for 2021
IR-2020-193, August 27, 2020 — The Internal Revenue Service announced today the opening of the application period for the 2021 Compliance Assurance Process program.

IRS: 50,000 spouses to get catch-up Economic Impact Payments
IR-2020-192, August 25, 2020 — The Internal Revenue Service will soon send catch-up Economic Impact Payment checks to about 50,000 individuals whose portion of the EIP was diverted to pay their spouse’s past-due child support.

IRS provides tax relief for victims of California wildfires; Oct. 15 deadline, other dates extended to Dec. 15
IR-2020-191, August 24, 2020 — Victims of the California wildfires that began August 14 now have until December 15, 2020 to file various individual and business tax returns and make tax payments, the IRS announced today.

​IRS provides tax relief for victims of Iowa derecho; extends Oct. 15, other upcoming deadlines to Dec. 15
IR-2020-190, August 24, 2020 — Victims of the August 10 derecho storm that affected parts of Iowa now have until December 15, 2020, to file various individual and business tax returns and make tax payments, the IRS announced today.

As peak hurricane season nears, IRS reminds people to prepare for natural disasters
IR-2020-189, August 24, 2020 — The Internal Revenue Service reminds people to create or maintain an emergency preparedness plan. A well-thought-out plan is a critical component for surviving natural disasters.

IRS updates procedures for designating taxpayer disputes for litigation, implementing provisions of Taxpayer First Act
IR-2020-188, August 24, 2020 — The Internal Revenue Service today issued a memorandum that provides interim guidance to the agency’s compliance staff on requests to designate issues for litigation.

IRS: Deadline to return distributions to retirement accounts is Aug. 31
​IR-2020-187, August 24, 2020 — The Internal Revenue Service today reminds IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year that they have until Aug. 31 to rollover or repay the distribution to avoid paying taxes.

SEC

SEC Charges Ponzi Scheme Targeting African Immigrants
2020-198, Aug. 28, 2020 — The Securities and Exchange Commission today charged two Maryland companies and their principals for a scheme that allegedly defrauded approximately 1,200 investors, many of them African immigrants, of more than $27 million.

SEC Charges Herbalife With FCPA Violations
2020-197, Aug. 28, 2020 — The Securities and Exchange Commission today announced that Herbalife Nutrition Ltd. has agreed to pay more than $67 million to settle charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).  In a parallel action, the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of New York today announced that Herbalife will pay a criminal fine of more than $55 million for a total of more than $123 million paid in both actions.

SEC Charges BorgWarner for Materially Misstating its Financial Statements
2020-195., Aug. 26, 2020 — The Securities and Exchange Commission today announced settled charges against BorgWarner Inc., a motor vehicle parts manufacturer headquartered in Auburn Hills, Michigan, for materially misstating its financial statements by failing to account for certain asbestos liabilities.

SEC Monitoring Impact of Hurricane Laura on Capital Markets
2020-194, Aug. 26, 2020 — The Securities and Exchange Commission is closely monitoring the impact of Hurricane Laura on investors and capital markets. The SEC divisions and offices that oversee companies, accountants, investment advisers, mutual funds, brokerage firms, transfer agents, and other regulated entities and investment professionals will continue to closely track developments. They will evaluate the possibility of granting relief from filing deadlines and other regulatory requirements for those affected by the storm. Entities and investment professionals affected by Hurricane Laura are encouraged to contact Commission staff with questions and concerns.

SEC Halts Fraudulent Offering by Florida Investment Adviser
2020-193, Aug. 26, 2020 — The Securities and Exchange Commission today announced that it has filed an emergency action against Florida-based investment adviser Coral Gables Asset Management LLC and its sole owner, David C. Coggins, in connection with an alleged fraudulent offering. On Aug. 20, 2020, U.S. District Court Judge Kathleen M. Williams granted the SEC's request for emergency relief, including an asset freeze and an order for records preservation, against Coggins and Coral Gables, as well as two entities charged by the SEC as relief defendants.

SEC Adopts Rule Amendments to Modernize Disclosures of Business, Legal Proceedings, and Risk Factors Under Regulation S-K
2020-192, Aug. 26, 2020 — The Securities and Exchange Commission today announced that it voted to adopt amendments to modernize the description of business (Item 101), legal proceedings (Item 103), and risk factor disclosures (Item 105) that registrants are required to make pursuant to Regulation S-K. These disclosure requirements have not undergone significant revisions in over 30 years. The amendments the Commission is adopting today update these items to reflect the many changes in our capital markets and the domestic and global economy in recent decades.

SEC Modernizes the Accredited Investor Definition
2020-191, Aug. 26, 2020 — The Securities and Exchange Commission today adopted amendments to the “accredited investor” definition, one of the principal tests for determining who is eligible to participate in our private capital markets.  Historically, individual investors who do not meet specific income or net worth tests, regardless of their financial sophistication, have been denied the opportunity to invest in our multifaceted and vast private markets.  The amendments update and improve the definition to more effectively identify institutional and individual investors that have the knowledge and expertise to participate in those markets.

SEC Charges Super Micro and Former CFO in Connection with Widespread Accounting Violations
2020-190, Aug. 25, 2020 — The Securities and Exchange Commission today charged Super Micro Computer, Inc., a producer of computer servers, and its former CFO, Howard Hideshima, with prematurely recognizing revenue and understating expenses over a period of at least three years.

TIGTA

Controls Over the Management and Security of Official Passports Need Improvement
August 26, 2020