Course Information

The purpose of this course is to inform the reader of the various changes affecting accounting, compilation and review, and auditing engagements as well as a review and recall of existing standards.  Topics include a summary of newly issued FASB statements, new statements issued by the Auditing Standards Board, changes in compilation and review, current and pending developments, practice issues, and more.

Chapter 1:

• Review how to account for a joint venture
• Identify attributes of a joint venture
• Identify how to measure a crypto asset
• Review how to record a crypto asset on the balance sheet and income statement
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Review the bases that can be used to disclose disaggregation of expenses required by ASU 2024-03

Chapter 2:

• Recognize examples of assets that are and are not subject to the ASC 326-20 expected credit loss model
• Recognize the model that ASU 2016-13 uses to deal with credit losses
• Recall how an entity should present the new allowance for credit losses on the balance sheet
• Identify how credit losses should be recorded under new ASU 2016-13
• Recognize some of the disclosures required by ASU 2016-13
• Identify examples of entities that are under common control
• Identify how a decline in fair value of a held-to-maturity debt security should be handled under GAAP
• Recognize the new impairment model for available-for-sale debt securities under ASC 326-30
• Identify how an entity should implement the ASU 2016-13 rules

Chapter 3:

• Identify GAAP and non-GAAP measurements
• Review an example of a rate used as the discount rate for pension obligations
• Recognize the impact that life expectancy has on the amount of a pension liability
• Review how debt and equity securities should be accounted for under GAAP
• Recognize the approaches that are used to record revenue under the revenue standard
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Identify a threat that exists with certain banks
• Recognize a peer review deficiency identified by the AICPA
• Recognize the VIE accounting alternative for leases under common control
• Recognize the disclosure required for a start-up company

Chapter 4:

• Recognize a key change made to GAAP by the new lease standard
• Identify a type of lease that exists for a lessee under ASU 2016-02
• Recall a type of lease for which the ASU 2016-02 rules do not apply
• Identify some of the types of benefits a lessee can obtain from a leased asset
• Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
• Recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
• Identify how a lessee should account for initial direct costs
• Recognize items that are and are not components of a lease term
• Recall the method a lessee should use to record interest expense on a lease obligation
• Identify some types of leases for a lessor
• Recall how a lessor should initially account for initial direct costs for a lease in certain instances
• Identify how a lessor should account for lease payments received on the income statement for an operating lease
• Recall how a lessor should classify certain cash receipts on the statement of cash flows
• Recognize how certain existing leases are accounted for on the implementation date of ASU 2016-02
• Identify how deferred income taxes will be treated for lessees under ASU 2016-02
• Recall the potential impact that the new lease standard might have on a lessee’s EBITDA and debt-equity ratios
• Recall the IRS rules as when an entity should and should not capitalize a lease for tax purposes

Chapter 5:

• Identify the type of expense that is the basis for measuring the ERC
• Recognize the options for presenting the ERC on the statement of income
• Recall types of entities that most states do not permit to make the PTE tax election
• Identify how to present the deferred state tax liability related to the PTE tax
• Recognize the adjustment that must be made to convert to C corporation status
• Identify the adjustment required when there is a change in the corporate tax rate
• Recall the rule for disclosures related to unrecognized tax positions

Chapter 6:

• Recognize how to account for restricted cash on the statement of cash flow
• Recall how to account for non-cash transactions on the statement of cash flow
• Identify the approach taken to present a purchase of business assets on the statement of cash flow
• Recognize an example of a sustainable flow
• Recognize an example of an unused carryover item that a C corporation might have
• Recall how an entity must deal with certain disclosures in tax-basis financial statements

Chapter 7:

• Identify services that are and are not considered consulting services engagements
• Recognize the standards to follow in preparing financial statements as part of a consulting services engagement
• Identify which party is responsible for determining that engagement team members have appropriate competence and capabilities to perform a SSARS engagement
• Recognize the definition of materiality found in SAS No. 138
• Recall the least profitable engagement to perform
• Identify the type of reporting an accountant should perform when management elects to include disclosures about a few matters in the notes
• Identify a recommendation to mitigate the risk associated with performing bookkeeping services
• Identify a better approach to compute the number of days sales in accounts receivable
• Recognize a requirement that must be satisfied to perform a preparation of financial statements engagement
• Identify the type of report that should be issued for a preparation of financial statements engagement
• Recall how a preparation of financial statements engagement is treated in peer review
• Identify an acceptable location to present a description of a special purpose framework, such as tax-basis
• Review actions that would and would not impair an accountant’s independence
• Recognize bookkeeping functions that would impair independence, and
• Identify a key factor in determining whether the performance of BOI filing assistance services impairs an accountant’s independence

Chapter 8:

• Recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
• Identify certain requirements an engagement partner must satisfy in performing an audit engagement
• Recognize examples of resources assigned or made available by a firm to support performance of an audit engagement
• Identify a type of unconscious bias defined in SAS No. 146
• Identify when a successor auditor should request management to authorize a predecessor auditor’s response to the successor auditor’s inquiry
• Recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
• Recall the extent of a predecessor auditor’s response to a successor auditor’s inquiries when there are certain restrictions on the predecessor auditor.
• Identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits.
• Recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit.
• Identify the party required to take overall responsibility for the quality on a group audit engagement in accordance with SAS No. 149

Chapter 9:

• Identify a scenario in which it would be impracticable for an auditor to attend a physical inventory
• Recognize an advantage of remote auditing
• Recall a key fact about use of hotlines
• Recognize a behavioral trait of most occupational fraudsters
• Identify a trait more prominent in a male versus a female fraudster