Annual Accounting and Auditing Update & Review

Exam Questions: 120
Course Level: Basic
Pages: 768 | Content: 746, Supplemental: 22
NASBA Area of Study: Accounting and Auditing
Not Acceptable for: Enrolled Agents
Version: 5410X

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 16 Accounting hours and 8 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 ASU 2016-02 and Other Amendments - 2023
  • Accounting and Financial Reporting in a Post-COVID Economy: Inflation, Supply Chains, Interest Rates and Recession - 2023
  • Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax - 2023
  • PPP Loans and Forgiveness- Accounting and Financial Reporting Issues - 2023
  • Current Developments - Accounting and Financial Reporting - 2023
  • Financial Instruments - Credit Losses - 2023: ASU 2016-13
  • New Auditing Standards: SAS Nos. 142-148
  • Auditing Development - 2023
  • Compilation and Review Update - 2023
  • 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 identify some of the types of benefits a lessee can obtain from a leased asset
  • To identify a threshold for a lease term to be considered a major part of an asset's remaining economic life
  • To recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
  • To identify how a lessee should account for initial direct costs
  • To recognize items that are and are not components of a lease term
  • To recall the method a lessee should use to record interest expense on a lease obligation
  • To identify some types of leases for a lessor
  • 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 recall how a lessor should classify certain cash receipts on the statement of cash flows
  • To recognize how certain existing leases are accounted for on the implementation date of ASU 2016-02
  • To identify how deferred income taxes will be treated for lessees under 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 recall the IRS rules for when an entity should and should not capitalize a lease for tax purposes
  • To recognize some types of concentrations that might require disclosure under the risk and uncertainty rules
  • 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 recognize the relationship a change in interest rates has on real estate values
  • To identify methods that can be used to measure variable consideration revenue
  • To recognize an example of a construction-type contract
  • To identify whether the LIFO IPIC approach is acceptable for GAAP
  • To recall the net operating loss rules
  • 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 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 identify some of the eligible expenses related to use of PPP loan proceeds
  • To recognize approaches to account for PPP loans under GAAP
  • To recall how to present debt issuance costs on the financial statements
  • To recognize how to account for PPP loan forgiveness
  • To recognize how to present a gain on extinguishment on the statement of cash flows
  • To identify how to treat the forgiveness of a PPP loan for tax purposes
  • To recognize how the IAS 20 grant approach is used to account for its PPP loan
  • To recognize actions that impact a CPA's independence in a PPP loan assistance engagement
  • To identify whether an emphasis-of-matter paragraph may be used in an accountant's report when there is a forgiveness of a PPP loan
  • To identify the goal of the FASB's Disaggregation - Income Statement Expenses 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 a concentration of risk that might require disclosure
  • To identify a particular way in which most marijuana businesses must operate
  • To recognize when a state might be able to charge sales tax under the Wayfair decision
  • To recognize the accounting alternative for leases under common control in ASU 2018-17
  • To recognize the model that ASU 2016-13 uses to deal with credit losses
  • To identify how credit losses should be recorded under the new ASU 2016
  • -13
  • To identify some of the disclosures required by ASU 2016-13
  • To identify an example of an attribute of information obtained as audit evidence
  • To recognize actions an auditor should perform in evaluating information used as audit evidence
  • To identify an attribute that affects the reliability of information used as audit evidence
  • To recall functions on which an auditor can use automated tools and techniques
  • To identify an example of an accounting estimate related to classes of transactions, account balances, and disclosures identified in SAS No. 143
  • To recognize how inherent and control risks should be assessed in accordance with SAS No. 143
  • To recognize an example of an inherent risk factor
  • To identify examples of the approaches that can be performed in assessing the risks of material misstatement from accounting estimates
  • To recall one of the amendments made to AU-C 501 by SAS No. 145 in connection with using the work of an external inventory-taking firm
  • To identify some instances in which an auditor may conclude that a specialist's work is not adequate
  • 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
  • To recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
  • To identify certain requirements an engagement partner must satisfy in performing an audit engagement
  • To recognize examples of resources assigned or made available by a firm to support performance of an audit engagement
  • To recall a possible action that an engagement team may take to mitigate impediments to exercise professional skepticism
  • To identify when a successor auditor should request management to authorize a predecessor auditor's response to the successor auditor's inquiry
  • To recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
  • To recall the extent of a predecessor auditor's response to a successor auditor's inquiries when there are certain restrictions on the predecessor auditor
  • To identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits
  • To recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit
  • To identify a scenario in which it would be impracticable for an auditor to attend a physical inventory
  • To recognize an advantage of remote auditing
  • To recognize a factor to consider in evaluating going concern of an entity
  • To identify a term used as a benchmark in considering going concern
  • To identify a suggestion for an auditor reducing time and increasing audit efficiency
  • To recognize when negative accounts receivable confirmations should not be used
  • To recognize a behavioral trait of most occupational fraudsters
  • To identify which party is responsible for determining that engagement team members have appropriate competence and capabilities to perform a SSARS engagement

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