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Annual Accounting and Auditing Update & Review

Exam Questions: 120
Course Level: Basic
Pages: 706 | Content: 678, Supplemental: 28
NASBA Area of Study: Accounting and Auditing
Not Acceptable for: Enrolled Agents
Version: 5410V

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 engagements, current and pending developments, practice issues, and more. PLEASE NOTE: This course qualifies for 12 Accounting hours and 12 Auditing hours. Not acceptable for Enrolled Agents. All course material provided. Prerequisites: Basic understanding of U.S. GAAP, compilation and review, and auditing standards. Course level: Basic.

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Course Information

Table of Contents
  • Accounting and Financial Reporting for COVID-19, the CARES Act, and PPP Loans
  • Implementing the New Lease Standard-2021: ASU 2016-02 Leases and Other Amendments
  • Financial Instruments - Credit Losses ASU 2016-13- 2021
  • Current Developments - Accounting and Financial Reporting - 2021
  • Implementing the New Revenue Standard- ASC 606: 2021 Guidance for Private Companies
  • Financial Instruments - 2021: Implementing ASU 2016-01
  • SSARS No. 25: Materiality in a Review of Financial Statements and Adverse Conclusions
  • New Auditing and Attestation Standards: SAS Nos. 134-143 and SSAE Nos. 19-22
Objectives
  • To identify the definition of near term
  • To recall the frequency in which an entity should test goodwill for impairment
  • To recall the method for valuing certain types of inventory
  • To recognize how business interruption insurance recoveries may be presented on the statement of income
  • To identify certain GAAP going-concern terminology
  • To identify certain tax law changes made by the CARES Act
  • To recognize how a company should present and account for CARES Act PPP loans and related forgiveness on its financial statements
  • To recognize a key change made to GAAP by the new lease standard
  • To identify a type of lease that exists for a lessee under ASU 2016-02
  • To recall a type of lease for which the ASU 2016-02 rules do not apply
  • To recognize some of the criteria that determine whether a contract is or is not a lease
  • To identify how a lessee should account for initial direct costs
  • To recall how a lessor should account for initial direct costs for a lease in certain instances
  • To identify how a lessor should account for lease payments received on the income statement for an operating lease
  • To recognize how certain existing leases are accounted for on the implementation date of ASU 2016-02
  • To recall the potential impact that the new lease standard might have on a lessee's EBITDA and debt-equity ratios
  • To recognize the model that ASU 2016-13 uses to deal with credit losses
  • To identify how credit losses should be recorded under new ASU 2016-13
  • To identify some of the disclosures required by ASU 2016-13
  • To identify a characteristic of a multi-employer plan
  • To recall the color coding of funded status of a multi-employer plan
  • To recognize the impact of changes in life expectancy on pension benefit obligations
  • To recognize an argument for not amortizing goodwill
  • To identify an impact of the Wayfair decision on company sales taxes
  • To identify an example of a customer-related asset
  • To recognize the types of agreements that qualify as contracts under the revenue standard
  • To recall a condition that must be met to identify a separate performance obligation
  • To identify at least one method that is used to record revenue in Step 5 of the revenue standard
  • To recognize when a good is considered transferred to a customer under ASC 606
  • To recognize how to account for the transfer of a product with a right to return
  • To recall the general rule that determines whether an entity should record revenue gross or net
  • To recall how certain contract costs are accounted for under the revenue standard
  • To recognize certain disclosures required by the revenue standard for nonpublic entities
  • To identify the category of securities for which ASU 2016-01 retains the three categories under existing GAAP
  • To recall one of the changes made by ASU 2016-01 to existing GAAP for financial instruments
  • To recall how available-for-sale debt securities are measured on an entity's balance sheet
  • To recognize how an entity should account for a temporary impairment
  • To recall how an entity should present an unrealized gain or loss on an equity security under ASU 2016-01
  • To identify how a mutual fund that invests in debt and equity securities should classify the investment
  • To recall a change made to the exemption for fair value disclosures with respect to trade receivables and payables
  • To recognize a precondition for an accountant to accept a SSARS engagement
  • To recall whether the preparation of financial statements standard is an attest or nonattest service
  • To identify whether a report is required in a preparation of financial statements engagement
  • To recognize what the reporting requirements are, if any, when a "no assurance" legend is omitted from prepared financial statements under the AR-C 70 standards
  • To identify where to disclose GAAP departures in a preparation of financial statements engagement
  • To identify factors that should be considered in determining materiality in a review engagement
  • To recognize a change that SSARS No. 25 makes to the accountant's review report
  • To identify the term that GAAP uses for management's assessment of an entity's going concern
  • To recall some of the items that should be documented in a review engagement
  • To recall the location of certain sections in the auditor's report
  • To recognize the categorization of an adverse opinion
  • To identify a change that SAS No. 136 makes to the limited-scope ERISA audit
  • To recognize one of the changes made by AU-C 703 to ERISA audits
  • To recall the reporting requirement when an auditor obtains other information in an audit
  • To identify a reference that is made in the new definition of materiality
  • To recognize the definition of certain types of paragraphs made by SAS No. 139
  • To identify an attribute of audit evidence referenced in SAS No. 142
  • To identify how inherent and control risk should be assessed under the SAS No. 143 requirements
  • To recall the three approaches that an auditor can use to perform further audit procedures required by SAS No. 143
  • To identify a change made by SSAE No. 19
  • To recognize one of the four types of engagements within SSAE No. 21's new definition of attestation engagement
  • To identify an example of subject matter that is within the scope of SSAE No. 22's review

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