At a meeting yesterday of the PCAOB's Investor Advisory Group, two working groups reported on topics that might be of particular interest: non-GAAP financial measures and enhanced audit reports. There has been a lot of discussion about non-GAAP abuses, the SEC's efforts to reel them back and the problems associated with them, including the absence of uniform definitions, comparability and consistency, and the potential to mislead, particularly as a result of the exclusion of critical and recurring investment expenditures.
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