#BECKER CPA BOOK UPDATES REGULATION PROFESSIONAL#

The audit work is performed in early February, 2019, and Bob notes that January 2019 sales are much lower than other months in the 4 th quarter of 2018.Д«ased on an informal conversation with the VP of Sales, Bob suspects that the company is shipping products in late December that customers donвЂ™t need until January. He notices that sales increased sharply in the last few weeks before the end of 2018. If youвЂ™re still not sure what this CPA exam Blueprint change means, here are some examples that go into greater detail: Example 1: Revenue RecognitionД«ob is performing an analysis of sales by month.

Modify planned procedures, based upon new information (environment cues, explanation inconsistencies, new evidence) to achieve the primary objectives of the audit.

Asking relevant follow-up questions in order to effectively understand their motivations and perspectives in any given scenario.

Analyzing responses from interviews, whether informal or tightly structured, with management and others in non-financial roles.

Newly tested topics on audit evidence may include: The AUD test has added a task requiring an auditor to, in their own words, вЂњInvestigate evidence that either contradicts or corroborates management explanations, expectations and other hypotheses throughout an audit or non-audit engagement.вЂќД®ssentially, what this means is that auditors need to act like detectives in order to determine whether or not their clients are telling the truth. Obtaining Audit EvidenceДЄnother important goal for an auditor is to obtain sufficient and appropriate evidence to support an audit opinion. Hence, obtaining sufficient audit evidence is more important the completing the audit by a specific date. The client needs the audited financial statements to secure a new bank loan.Дuring the search for unrecorded liabilities, Julie finds a number of checks written after year-end for liabilities that were not posted as of the balance sheet date.ДЄs the audit manager, Julie should investigate the unrecorded liabilities issue and determine if the company has sufficient internal controls in place. JulieвЂ™s CPA firm is under client pressure to complete the audit and issue an audit opinion in the next 10 days.

#BECKER CPA BOOK UPDATES REGULATION PROFESSIONAL#

Julie cannot let her professional bias regarding other clients impede her professional skepticism. However, given Glitters JewelryвЂ™s history of inventory count issues, the physical inventory count should take place on the balance sheet date. The CPA firm is auditing the inventory balance of the store Glitters Jewelry auditors have posted a number of large adjusting entries to inventory after performing counts in past years.Дuring five prior audits of other retail stores, Julie counted inventory a week before the yearвЂ™s end and has not needed to post large adjusting entries to inventory after each count. Julie is an audit manager with experience in performing physical inventory counts for a variety of retail stores. Here are two examples to illustrate these concepts: Example 1: Inventory Count The AUD test covers several issues that can impede an accountantвЂ™s professional skepticism, including professional bias, threats, incentives, and the shortcuts to making solid judgments. However, judgments are common when performing accounting work. Many CPA candidates, particularly those who do not have a great deal of accounting work experience, might be surprised by the amount of judgment required to post accounting transactions. The AUD test has added more detail on professional skepticism, which the AICPA defines in this way : вЂњProfessional skepticism reflects an iterative process that includes a questioning mind and a critical assessment of audit evidence.вЂќ YouвЂ™ll notice more questions that use the terms professional skepticism or professional judgment on the 2022 test. These are some changes to the AUD portion of the CPA exam worth noting: Professional Skepticism If this applies to you, check out the list of notable changes below!ДЄuditing And Attestation (AUD) Exam Changes Hence, any aspiring CPA exam candidates should be aware of the changes outlined in it. What this means is that everything that will be tested on the 2022 CPA exam can be found in this document.

The Blueprint is changed periodically to reflect changes in laws, regulation, and the business environment. The American Institute of CPAs (AICPA) administers the CPA exam and they outline all of its topics in the Blueprint, a lengthy document that discusses test matter in great detail. If youвЂ™re interested in creating the perfect study plan, then your first step is to consult the CPA exam Blueprint.

Becker cpa book updates regulation