CAQ Expands CECL And ICFR Resources

Last week, the Center for Audit Quality released two new resources—an updated Guide to Internal Control over Financial Reporting (ICFR Guide) and a new Tool for Audit Committees: Preparing for the New Credit Losses Standard (CECL Guide).

The ICFR Guide updates the CAQ's 2013 version and provides an overview of ICFR concepts, including the control environment, control activities, reasonable assurance and the levels of ICFR deficiencies. The ICFR Guide also includes a discussion of the roles and responsibilities of management, audit committees and auditors with respect to ICFR. Among other updates for 2019, the ICFR Guide now includes a discussion of recent research regarding the relationship between effective ICFR and investor confidence and strength in the financial reporting process. Notably, the 2019 updates were released on the same day as the SEC's proposed Amendments to the Accelerated Filer and Large Accelerated Filer Definitions, SEC Release No. 34-85814 (May