2013 Legislative & Regulatory Landscape

Transcription

1 AUDIT COMMITTEE INSTITUTE 2013 Legislative & Regulatory Landscape James P. Liddy KPMG Vice Chair Audit March 28, 2013

2 Today s Discussion 2013 Legislative & Regulatory Landscape: Perspective from the Capital Financial Reporting Update KPMG s ACI Update AUDIT COMMITTEE INSTITUTE 2

3 On the Webcast Today Host James P. Liddy KPMG Vice Chair Audit Presenters Scott McLucas Executive Director, KPMG Federal Governmental Affairs Teresa E. Iannaconi Partner, KPMG s National Office and Former Deputy Chief Accountant, SEC Division of Corporation Finance Dennis T. Whalen Partner in Charge & Executive Director, KPMG s Audit Committee Institute AUDIT COMMITTEE INSTITUTE 3

4 Administrative CPE regulations require online participants to take part in online questions Must respond to four (4) questions to qualify for 1 CPE credit Questions will appear on your media player Results reviewed in the aggregate; no responses will be tracked back to any individual or organization Do not view the presentation on slide show mode polling questions will not appear To ask a question, use the Ask a Question icon on your media player Help Desk: (or outside the U.S. at ) AUDIT COMMITTEE INSTITUTE 4

5 2013 Legislative & Regulatory Landscape Scott McLucas Executive Director, KPMG Federal Governmental Affairs

6 The Big Picture View of Washington Today Sequestration s across the board spending cuts Expiration of fiscal 2013 spending authority and debt ceiling showdown Continuing resolution to keep government funded until September Prospects for entitlement reform Prospects for tax reform AUDIT COMMITTEE INSTITUTE 6

7 SEC Issues of Interest to Directors Changing composition of Commission and senior staff SEC funding issues Movement on range of Dodd- Frank and JOBS Act open issues Conflict Minerals appeal Importance of cost benefit analysis on SEC rulemaking Disclosure of political contributions AUDIT COMMITTEE INSTITUTE 7

8 Other Key Areas of Focus for Directors Executive Order on cyber security Impact of recess appointments at the NLRB and CFPB Healthcare reform issues on the watch list for directors Mandatory auditor rotation in the U.S. and the EU AUDIT COMMITTEE INSTITUTE 8

9 Oversight of Political / Regulatory Risks Possible Questions How are audit committees and boards overseeing the very broad category of political / regulatory risks both in the U.S. and globally? Who in management is responsible for monitoring / managing these risks? Role of government relations professionals, internal audit, senior management, outside advisers? Who determines what s on the board s watch list and when to take deep dives? Do we discuss political / regulatory what-if scenarios? Are compliance plans updated on a timely basis to address regulatory changes? Do we have an effective organizational and governance structure to manage these regulatory compliance risks? AUDIT COMMITTEE INSTITUTE 9

10 Financial Reporting Update Teresa E. Iannaconi Partner, KPMG s National Office and dformer Deputy Chief Accountant, SEC s Division of Corporation Finance

11 Current Quarter Hot Topics American Taxpayer Relief Act Federal Budget Sequestration Iran Threat Reduction and Syria Human Rights Act Ongoing SEC Activities AUDIT COMMITTEE INSTITUTE 11

12 FASB Update Accounting for Certain Joint and Several Liability Arrangements Accounting for Release of CTAs Ongoing Standard d Setting AUDIT COMMITTEE INSTITUTE 12

13 Other Regulatory Developments NYC Bar Requests NYSE to Revise Rules on Audit Committee Oversight of Risk Nasdaq Proposed Rule on Internal Audit Requirement Conflict Minerals Recent Court Challenges PCAOB Standard No. 16 Auditor Communications with Audit Committee AUDIT COMMITTEE INSTITUTE 13

14 KPMG s ACI Update Dennis T. Whalen Partner in Change & Executive Director KPMG s Audit Committee Institute

15 KPMG s ACI Update Key Takeaways from KPMG s 2013 Annual Issues Conference Ensuring financial reporting integrity and reinforcing audit quality Focusing on risk management and improving information quality Better leveraging internal audit Strengthening the board s global lens. Anticipating a robust enforcement environment for the foreseeable future Has the audit committee s agenda reached a tipping point? AUDIT COMMITTEE INSTITUTE 15

16 KPMG s ACI Update Mark Your Calendar 2014 Audit Committee Issues Conference January 14-15, Phoenix ACI s Spring Roundtable Series: Raising the Board s Game in 2013 (20+ Cities, May/June) New from ACI Directors Quarterly (April) Global Boardroom Insights AUDIT COMMITTEE INSTITUTE 16

17 Thank you for joining us. KPMG.com/ACI independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. NDPPS The National Association of Corporate Directors is separate and distinct from KPMG International Cooperative ("KPMG International"), and its member firms. KPMG LLP (U.S.) does not provide legal services. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.