In remarks before the 36th Annual SEC and Financial Reporting Institute Conference, SEC Chief Accountant Wesley Bricker emphasized the importance of effective financial reporting and auditor independence. He stated:
"Today's investors expect and demand the auditor to perform rigorous independent audits in which auditors obtain reasonable assurance about whether the financial statements are free from material misstatement. The continued relevance of - and trust in - the independent audit not only rests on the shoulders of the profession, but also on regulators."
Mr. Bricker described the role played by the Public Company Accounting Oversight Board ("PCAOB") in market oversight and investor protection, explaining how the PCAOB uses inspection and enforcement programs to promote compliance and accountability. He reported on the PCAOB's "standard-setting agenda" which included a proposed final auditor reporting standard, as an example of the kind of developments currently under consideration that might contribute to a more efficient auditing environment. Mr. Bricker reminded attendees that new revenue recognition standards will become effective in 2018, a new leases standard will become effective in 2019, and new classification and measurement of financial instruments standards will become effective in 2018.
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