Annual Accounting and Auditing Update & Review

Exam Questions: 120
Course Level: Basic
Pages: 738 | Content: 710, Supplemental: 28
NASBA Area of Study: Accounting and Auditing
Not Acceptable for: Enrolled Agents
Version: 5410W

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
  • Implementing the New Lease Standard-2022: ASU 2016-02 Leases (Topic 842) and Other Amendments
  • Accounting and Financial Reporting for COVID-19, the CARES Act, and PPP Loans - 2022 Edition
  • Accounting and Disclosures for The Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax - 2022 Edition
  • ASU 2016-13: Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments - 2022
  • Current Developments- Accounting and Financial Reporting - 2022
  • Selected Accounting Standards Updates (ASUs) - 2022
  • SSARS No. 25: Materiality in a Review of Financial Statements and Adverse Conclusions
  • New Auditing Standards: SAS Nos. 134-145
  • 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 initially 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 some types of concentrations that might require disclosure under the risk and uncertainty rules, including supply-chain shortages
  • To identify the definition of near term
  • To recall the frequency in which an entity should test goodwill for impairment
  • To recognize some exit and disposal costs
  • To recall how to classify business interruption insurance proceeds on the financial statements
  • To identify the benchmark used to determine going concern
  • To identify a method that can be used to measure variable consideration revenue
  • To recognize an example of a construction-type contract
  • To identify an advantage of a remote accounting function
  • To recall how to adjust a deferred tax account when there is a change in tax law
  • To recognize a change made by the CARES Act to the deductibility of interest
  • To recognize how to account for PPP loan forgiveness
  • To identify how to treat the forgiveness of a PPP loan for tax purposes
  • To recognize the type of expense that is the basis for measuring the amount of the ERC
  • To identify where to present the ERC in the statement of income using the ASC 958 conditional contribution model
  • To recognize where to present the ERC in the statement of income using the IAS 20 grant model
  • To identify an action step to be taken to correct the previous presentation and disclosure of an ERC in the prior year statement of income
  • To recognize the proper presentation of the ERC in a tax-basis statement of income
  • To recognize a technique that has been attempted to circumvent the SALT deduction limitation
  • To identify how to account for the PTE tax in an entity's financial statements
  • To recognize the requirements for recording deferred state income taxes with respect to the PTE tax election
  • To identify disclosures that should be made for the PTE tax
  • 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 the elements that are the target of the FASB's disaggregation project
  • To recognize one of the characteristics of a multi-employer pension plan
  • To recognize the impact that life expectancy has on the amount of a pension liability
  • To identify the basic rule of the LIFO Conformity Requirement
  • To recognize how the IPIC external index for LIFO is used for GAAP
  • To recall the type of investment that is eliminated by ASU 2016-01
  • To identify when a sustainability disclosure is required by an SEC company
  • To recognize an example of a contract that is exempt from the scope of the revenue standard
  • To identify one of the two approaches that is used to recognize revenue using the new revenue standard
  • To recall a change to the accounting for goodwill that is proposed by the FASB
  • To recognize how to present deferred income taxes on the balance sheet under ASU 2015-17
  • To recognize the basis that most marijuana businesses have to use
  • To recognize when a state might be able to charge sales tax under the Wayfair decision
  • To identify the private company election to perform a triggering event evaluation
  • To recognize the types of arrangements that qualify for the private company accounting alternative election related to goodwill amortization and acquisitions
  • To recognize the accounting alternative for leases under common control in ASU 2018-17
  • 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 identify a suggestion for an auditor to reduce time and increase audit efficiency
  • To recognize when negative accounts receivable confirmations should not be used
  • To identify the form of a comfort letter that would be appropriate for an accountant to make to a lender
  • To recall the rule for an auditor presenting his or her city and state on the audit report
  • To identify the rules for an auditor communicating deficiencies found in an audit
  • To recognize an example of a result that can occur if there is a problem with a DOL employee benefit plan audit
  • To identify a type of fraudster
  • 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 recognize an example of an attribute of information obtained as audit evidence per 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 some instances in which an auditor may conclude that a specialist's work is not adequate
  • To identify a type of risk assessment procedure that an auditor can use in accordance with SAS No. 145
  • To recall examples of risk assessment procedures that an auditor may perform in SAS No. 145
  • To recognize how to perform risk assessment procedures when relying on information obtained from previous experience with an entity
  • To identify examples of risk assessment procedures to obtain audit evidence in accordance with SAS No. 145
  • To recognize a new requirement made by SAS No. 145 in connection with assessing inherent risk and control risk in an audit
  • To identify how an auditor should respond if the auditor does not plan to test the operating effectiveness of an entity's controls

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