Top Accounting and Auditing Issues for 2022 CPE Course: Module 2

Author: Lynn Fountain, Pat Patterson, Robert K Minniti, Salvatore Collemi

This seven CPE hour course reviews top accounting issues: going concern: SAS No. 132, accounting and auditing under the new leasing standard, how to audit in a COVID-19 environment, and major audit issues: SAS 141, 142, and 143. The course discusses Statement on Auditing Standards (SAS) No. 132, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, from the AICPA’s Audit Standards Board (ASB). SAS No. 132 includes many significant changes in authoritative professional standards concerning going concern issues. It represents changes to the Generally Accepted Auditing Standards (GAAS) concerning “going concern” reporting for entities. It provides external auditors with practical and insightful perspectives on how to audit transactions under the Financial Accounting Standards Board’s (FASB) new leasing standard, Accounting Standards Codification (ASC) Topic 842, Leases. It discusses the new accounting and financial reporting requirements and how to substantively and analytically test them in accordance with Professional Standards. It also provides external auditors with both practical and insightful perspectives on how to navigate an audit engagement of a private company during the global pandemic. It reviews recent issues from the AICPA’s Auditing Standards Board (ASB) for private entities, including implementation issues with new effective dates. New and revised audit standards, attestation standards, and other recent pronouncements about auditing will be discussed. Also, the revised auditing standards resulting from the COVID-19 pandemic will be examined for current application.

Publication Date: August 2021

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

Topics Covered

• Overview of SAS No. 132
• In Front of the Issues
• Going Concern and Audit Problems
• COVID-19 Issues
• Tips for Auditors and Management
• Overview of FASB ASC Topic 842
• Accounting Under ASC Topic 842
• Auditing Under ASC Topic 842 for Lessee Clients
• Proper Planning During the Pandemic
• Changes in Certain Audit Procedures
• Understanding the Internal Control Environment Remotely
• Management Representation Letters
• Increase in Going Concern Assessments
• SOC Reports
• Significant Financial Reporting and Disclosure Implications
• Auditor's Report Implications
• AICPA Auditing Standards Update
• Statements on Auditing Standards 141, 142, and 143
• Changes to Attestation from the ASB: SSAES 20, 21, and 22
• COVID-19: Going Concern, Emphasis of Matter, and Scope Limitations
• Subsequent Events and COVID-19: Past, Present, and Future
• Risks and Uncertainties Plus COVID-19

Learning Objectives

• Identify updates on ASB No. 132
• Describe updates on selected AICPA auditing standards
• Describe updates on selected FASB standards
• Recognize and apply going concern audit deficiencies
• Identify updates on selected related and connected issues
• Differentiate SASs superseded by the new standards
• Describe correct statements regarding SAS No. 132
• Differentiate Accounting Standards Update (ASU) Sections and how they apply
• Identify a going concern condition or event related to the supply chain
• Recognize the FASB's new leasing standard requirements
• Identify the new accounting and reporting requirements of leases
• Identify which audit procedures to perform
• Recognize how to properly audit the transition requirements and initial adoption of the new standard
• Recognize the types of transactions that fall within the scope of ASC Topic 842
• Identify the first question to be considered when determining whether an arrangement contains a lease
• Identify an example of an initial direct cost (IDC) of a lease
• Identify areas of the audit where risk has gone up significantly due to the COVID-19 pandemic
• Recognize viable alternative audit procedures to perform
• Describe how to address potential reporting implications
• Differentiate FASB ASC Topics and how they apply
• Recognize the specific steps in the order of asset impairment testing
• Summarize the auditing pronouncements that may impact private companies that come from the Auditing Standards Board (ASB) of the AICPA and review other recent audit releases that affect the non-issuing entities
• Identify the changes in Statement on Auditing Standards (SAS) Nos. 141, 142, and 143
• Recognize changes to attestation in Statement on Standards for Attestation Engagements (SSAE) Nos. 20, 21, and 22
• Understand auditing issues and financial reporting considerations related to the COVID-19 pandemic

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (7 hours)

Program Prerequisites
None

Advance Preparation
None