Top Accounting and Auditing Issues for 2024 CPE Course: Module 2 (Currently Unavailable)

Author: Salvatore Collemi, Lynn Fountain

This five CPE hour course reviews top auditing issues: new auditor’s reporting standards, how to audit under the new leasing standard, and the future of internal audit. The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) completed its project to update the requirements surrounding the auditor’s report. With the issuance of so many new Statements on Auditing Standards (SAS) (Nos. 134 through 141), affecting the entire AU-C 700 series of AICPA Professional Standards, there are more requirements that audit engagement teams will need to know. This course walks through the key areas of those new requirements. The auditor’s report, while maintaining a good amount of the extant language, will be expanded as a result of the new standards. This course is designed to provide external auditors with practical and insightful perspectives on how to audit transactions under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, Leases. Topics addressed include the new accounting and financial reporting requirements and how to substantively and analytically test them in accordance with professional standards. This course also discusses what the future holds for internal auditors. Topics covered include how to address challenges and emerging risks, and the importance of staying relevant, being proactive, upgrading skills, and understanding the role of technology. It also briefly discusses the Institute of Internal Auditors proposed Global Internal Audit Standards that will replace the International Professional Practices Framework for internal auditors.

Publication Date: September 2023

Designed For
CPAs, Auditors, Accountants, Finance Professionals, Executive management/ Board members and Audit Committee members, and Legal and Compliance professionals

Topics Covered

• Overview
• SAS No. 134
• SAS No. 135
• SAS No. 136
• SAS No. 137
• SAS No. 138
• SAS No. 139
• SAS No. 140
• SAS No. 141
• The New Leasing Standard
• Lessee Accounting
• Lessee Lease Recognition and Management
• Lease Modifications
• Presentation, Disclosures, and Transition Requirements
• Sample Journal Entries
• Inquiry With Management Regarding Transition
• Auditing Under the New Leasing Standard
• Standards Update
• Challenges with the New Standards
• Challenges With Typical Internal Audit Activities For The Future
• Emerging Risks
• Challenges
• Addressing Challenges
• Skills

Learning Objectives

• Identify the new requirements of the reporting under the AICPA's Professional Standards
• Recognize the new form and content of the updated auditor's report and when and how to modify it
• Identify the Statement on Auditing Standards (SAS) that was issued in May 2019 to improve the transparency and relevance of the communication in the auditor's report
• Identify a characteristic/change with respect to SAS No. 134
• Identify the type of audit of an employee benefit plan that used to be called a "limited scope audit" that will now be referred to as an "ERISA Section 103(a)(3)(C)" audit, subsequent to the release of SAS No. 136
• Explain the key auditing concept addressed by SAS No. 138
• Recognize the FASB's new leasing standard requirements
• Describe the new accounting and reporting requirements of leases
• Identify which audit procedures to perform
• Explain how to properly audit the transition requirements and initial adoption of the new leasing standard
• Identify approximately what amount of right-of-use (RoU) assets and lease payment liabilities will be added on by U.S. companies' balance sheets on account of the new lease standard
• Identify the ASU issued by the FASB on June 2, 2020, that amended the effective date of the new leasing standard
• Identify a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration
• List the types of costs that are commissions or payments made to an existing tenant to terminate the lease
• Explain the context of the proposed Global Internal Audit Standards
• Identify the challenges for auditors to stay relevant in a changing business environment
• Identify challenges to the traditional audit process
• Identify top emerging risks for internal audit
• Explain how to evaluate the impact of the changing environment (due to COVID-19) on the work plan of internal audit
• Identify and examine actions internal audit can take to address challenges
• Recognize the importance of upgrading the skills and exposure of the internal audit team
• Recognize the role of technology in assuring a smooth transition to value-added auditing

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (5 hours)

Program Prerequisites
General knowledge of ASC Topic 842 and AICPA Professional Standards.

Advance Preparation
None