OUTLOOK & ANALYSIS

Top 10 New Challenges in Accounting and Auditing

It’s only January, but 2009 looks to be a year of significant change for accounting and auditing practitioners.

Here are just a few of the “the trends and events disrupting the status quo in public accounting,” according to Jim Reeves, senior vice president of product development at Thomson Tax & Accounting Research & Guidance Group, blogging here.

  1. FASB Codification beginning July 1, 2009, which will change the way accounting standards are issued, researched, communicated, and referenced;
  2. A spotlight on accounting standards as a component of the financial regulatory system that will be substantially overhauled, with “better enforcement, better oversight, better disclosure, and increased transparency,” according to President Obama;
  3. The uncertaintly surrounding the SEC’s proposed roadmap for transitioning U.S. pubic companies to IFRS created by new SEC Chair Mary Schapiro;
  4. Audit considerations of XBRL-tagged data for SEC financial reporting that will initially impact the 850 firms that audit public companies and eventually impact all audit workflow when XBRL is embedded in enterprise accounting systems;
  5. Electronic confirmations – a good thing from an efficiency standpoint, but change nevertheless, as 3,500 firms that have already made the switch can attest;
  6. More clients with potential going concern issues, including banks, developers, and other businesses that may have trouble accessing credit or other funding;
  7. Increased demand for forensic accounting, assurance services other than auditing, and risk management and compliance related work;
  8. FIN 48 scheduled to become effective (once again) for nonpublic companies in 2009, along with a new disclosure requirement for their 2008 financials for those businesses that defer compliance;
  9. SFAS 141R on business combinations effective for nonpublic companies in 2009; and
  10. 403(b) plans that are subject to ERISA (primarily plans sponsored by nonprofit organizations) will be subject to audit requirements for their 2009 year-ends if the plan has more than 100 participants.

One Response to “Top 10 New Challenges in Accounting and Auditing”

  1. accountants airdrie

    There is no doubt that measurements like this need to be taken to ensure transparency in many areas of the accounting process, however it does create significant changes at times that may open the door for errors?