Modern Management Intelligence

‘She listens’: Biden health official Rachel Levine is set to tackle inequity Biden’s stated priority to achieve health equity in the United States is borne out by various requests in his proposal. For instance, it allots $150 million more to the CDC for tracking health disparities and collecting data, and $200 million to the Department of Health and Human Services to investigate the maternal mortality crisis that disproportionately claims the lives of Native American and Black women. The biggest science funding agency in the United States, the NIH, would receive a $9-billion boost, for a total of $51 billion, according to the budget proposal. Most of that increase would launch a new $6.5-billion agency, the Advanced Research Projects Agency for Health, or ARPA-H, focused on accelerating the development of treatments for cancer and other intractable diseases. The planned unit echoes Biden’s own research interests as vice president under former president Barack Obama. After Biden’s son Beau died in 2015 following a brain cancer diagnosis, Biden led the cancer “moonshot” initiative proposed by Obama in 2016. Biden’s proposal did not include a specific request for the Food and Drug Administration (FDA), other than to note that some funding for future public health crises would enhance “FDA’s organizational capacity”. The Biden administration still has not nominated a permanent agency head; it is currently led by acting commissioner Janet Woodcock. Biden has made climate change a priority by bringing the United States back into the 2015 Paris climate agreement, a move that will culminate this month with an international climate summit hosted by the White House. Biden’s infrastructure plan unveiled in March proposed hundreds of billions of dollars for clean-energy efforts, and this week’s budget would follow up by giving a massive boost across multiple agencies to research examining the environmental and public-health implications of climate change. At the Environmental Protection Agency, which endured four years of proposed budget slashing under Trump, funding would rise more than 21% to $11.2 billion. Nearly half of that increase — $936 million — would be devoted to a new environmental justice initiative within the agency that would promote environmental cleanup and jobs in disadvantaged communities. The National Oceanic and Atmospheric Administration would see its budget increase by more than 25%, to $6.9 billion, including $800 million for climate research and $500 million for weather and climate satellites. Biden’s pick to head US environment agency heartens scientists Some of the biggest climate-related increases in Biden’s spending plan would come in the arena of applied energy research. At the Department of Energy, funding would surge for a raft of clean-energy innovation programmes, including $2 billion for an infrastructure and job-training programme meant to help achieve the president's goal of carbon-free electricity by 2035. The budget would also more info increase research funding for clean-energy technologies by more than 27%, to $8 billion, and invest another $1 billion in the Advanced Research Projects Agency-Energy (ARPA-E) and a new entity focused more broadly on climate, dubbed ARPA-C. All told, the spending proposals Biden laid out over the past two weeks would represent the largest investments ever in climate and clean energy, and are an order of magnitude larger than those achieved under Obama, says Dan Lashof, director of the World Resources Institute, United States, an environmental think tank in Washington DC. “There will be some back and forth and some tweaks,” says Lashof, “but I think the core of it is likely to move forward.” The proposed budget includes a 20% increase for the second largest science funding agency in the United States, the National Science Foundation (NSF), which would receive $10.2 billion. This includes $1.2 billion for research on climate change go to website and clean energy and $100 million — a roughly 50% increase — for programmes to advance racial equity in science and engineering. Biden’s request would increase basic research funding to $9.4 billion, and reiterates the administration’s interest in establishing a new directorate at NSF for technology, innovation and applied research.

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“It really allows us some opportunities to further our continuous improvement mindset and really improve audit quality,” Peo said. “We’re excited about this standard even though there are some challenges.” The implementation efforts are coming as a result of changes by many of the major standard setters in the quality management area: The International Audit and Accounting Standards Board (IAASB) in December issued three quality management standards. International Standard on Quality Management (ISQM) 1 and 2 and International Standard on Auditing 220 (Revised) are designed to move the profession away from quality “control” and toward quality “management.” The PCAOB in December 2019 issued a concept release that proposed changing standards for audits of U.S. public companies in ways that are similar to the new rules prescribed by the IAASB. The AICPA Auditing Standards Board (ASB) issued an exposure draft Thursday proposing three interrelated standards that address quality management. These proposed standards also will be similar to the IAASB’s standards. Particularly for global firms whose work is subject to different regulatory agencies, minimizing the differences between standards is critical. “One challenge could be making all that work together,” said Jennifer Haskell, CPA, chief auditor at Deloitte & Touche LLP. “There’s a lot of stakeholders and interested parties, so aiming for as much consistency as possible will be a challenge but will be a really great reward at the end.” A broad summary of the IAASB’s standards would show that they: Move quality management from a policies-based approach to a risk-based approach. ISQM 1 requires a firm to establish quality objectives, processes, procedures, and controls based on the risks that are particular to the individual firm’s circumstances. Place more rigor around the accuracy and completeness of the information and communications a firm uses in its system of quality management. Establish firm leadership’s responsibility and accountability for quality management and require an annual evaluation of effectiveness. Modernize the standards so they are relevant and compatible with the innovations taking place in the profession. For example, where an element in the old standard referred to the “human resources” element of the system of quality control, the new standard refers to a resources element that includes human, intellectual, and technological components. The requirement to document and test all processes, process risk points, and controls is where the quality management standards most resemble the rules for implementing SOX 404(b). The processes are all in place, Peo said, but documenting and testing them is a different challenge. “Some people thought the same thing about SOX 404 when they first implemented,” Peo said.

https://www.journalofaccountancy.com/news/2021/feb/new-standards-drive-toward-better-audits.html