We are pleased to release MaloneBailey's November 2024 issue of The Crunch, our newsletter highlighting recent accounting, regulatory and tax updates. Please note that the updates provided in this newsletter are not a comprehensive list.


We encourage you to visit the SEC, FASB and IRS websites for more information as well as a complete list of updated rules, regulations and proposals. We invite you to contact us should you have any questions about the information provided in this issue. Please visit our website to review archived versions of this newsletter containing past accounting, regulatory and tax updates.


The MaloneBailey Team

www.malonebailey.com


What's the Crunch?



Featured Podcast


  • Insights Into Valuation Services at a CPA Firm


Recent Accounting & Regulatory Updates



Recent FASB & AICPA Updates


  • Life and Health Insurance Entities – AICPA Published New Edition of Audit and Accounting Guide Published


Recent SEC & PCAOB Updates


  • Auditor Independence – PCAOB Issues Spotlight on Auditor Independence
  • Registration Statements – SEC Staff Publishes New Edition of its Frequently Asked Questions on Draft Registration Statements
  • EDGAR – SEC Adopts Improvements to EDGAR System


Extra Crunch


  • National Association of Corporate Directors’ BoardVision


About MaloneBailey, LLP


Featured Podcast

Insights Into Valuation Services at a CPA Firm


Summary - In our most recent podcast, Jamie Burress, CFA, CPA, MaloneBailey's Valuation Managing Director, discusses the nuanced world of valuation services. She unpacks the multifaceted nature of valuation, from its intricate methodologies to its indispensable role in shaping business strategies. Listeners are treated to a deep dive into why valuation services are a cornerstone for companies of all sizes. Whether you're a seasoned entrepreneur seeking to refine your business acumen or a budding startup navigating the complexities of the market, this episode provides invaluable knowledge to equip you for success. Tune in now to gain a newfound appreciation for the significance of valuation services in today's dynamic business landscape!



Simply click on the image below to listen to the podcast. For this podcast and many more, please visit the Resources section of our website.


Recent FASB & AICPA Updates

Life and Health Insurance Entities – AICPA Published New Edition of Audit and Accounting Guide Published


Summary - The AICPA has published a new edition of its Audit and Accounting Guide, Life and Health Insurance Entities. This AICPA guide was developed by the former Insurance Companies Committee and the Life Insurance Audit Guide Task Force to assist practitioners in performing and reporting on their audit engagements, and to assist management in the preparation of their financial statements in conformity with U.S. generally accepted accounting principles (GAAP) and statutory accounting practices.



This edition of the guide has been revised by AICPA staff to include certain changes necessary due to the issuance of authoritative guidance since the guide was originally issued and other revisions as deemed appropriate. Relevant guidance issued through April 1, 2024, has been considered in the development of this edition of the guide.


For more information, click here.


© 2024 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Recent SEC & PCAOB Updates

Auditor Independence – PCAOB Issues Spotlight on Auditor Independence


Summary - The PCAOB released a new staff Spotlight report, Inspection Observations Related to Auditor Independence. Although auditor independence is a critical element of an audit firm’s quality control system, PCAOB inspections show it is an area of common deficiencies year after year. The report highlights common deficiencies which resulted in the issuance of comment forms, good practices, and other reminders, to help audit firms and audit firm personnel comply with PCAOB and SEC independence standards and rules.


Good practices discussed in the Spotlight include:

  • Technology-based tools to promote early detection of potential independence violations;
  • Personal independence compliance representations from audit firm personnel on a more frequent basis;
  • Enhanced processes to ensure proper considerations are given to reporting all financial holdings; and
  • Disciplinary actions and sanctions for personal independence policy violations.


For more information, click here.


© 2024 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Registration Statements – SEC Staff Publishes New Edition of its Frequently Asked Questions on Draft Registration Statements


Summary - The staff in the SEC’s Division of Corporation Finance (Corp Fin) has published a new edition of its Frequently Asked Questions, Voluntary Submission of Draft Registration Statements. Corp Fin has prepared these questions and answers to address preliminary questions about the expanded procedures previously announced on voluntary submitted draft registration statements.


For more information, click here.


© 2024 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

EDGAR – SEC Adopts Improvements to EDGAR System


Summary - The SEC adopted rule and form amendments intended to enhance the security of its Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system and improve filers’ access and account management capabilities. The amendments require “EDGAR filers to authorize identified individuals who will be responsible for managing their accounts, and individuals acting on behalf of EDGAR filers will need to present individual account credentials obtained from Login.gov to access those EDGAR accounts and make filings. Form ID, the application for access to EDGAR, will be modernized to make the form more user-friendly.”


The SEC will also offer filers optional Application Programming Interfaces (APIs), a machine-to-machine method of making submissions, retrieving information, and performing account management tasks that will improve the efficiency and accuracy of filers’ interactions with EDGAR. Among other things, these APIs will allow filers to manage their EDGAR accounts with minimal manual interaction with EDGAR.


The SEC indicates that it will open for filer testing and feedback a beta software environment that will reflect the adopted rule and form amendments and the related technical changes on September 30, 2024. Information about signing up for beta testing and extensive additional information about the rule adoption and related technical changes can be found on the SEC website.



Compliance with amended Form ID is required on March 24, 2025. All rule and form amendments will be effective on that date, and filers will be required to comply with all rule and form amendments by September 15, 2025.


For more information, click here.


© 2024 CCH Incorporated and/or its affiliates. All rights reserved. Used with permission.

Extra Crunch

National Association of Corporate Directors’ BoardVision


Summary - BoardVision, "the official podcast of the National Association of Corporate Directors (NACD), engages directors, aspiring directors, CEOs, executives, and the broader business community on significant issues facing corporate boards today. In each episode, NACD faculty speak with industry leaders and governance experts to explore the stories and challenges of what it means to be a successful director."


To access the podcast, please click here.


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