Auditing and Attestation:
- As of January 1, 2014, the Clarified U.S Auditing Standards (AU-C) replaced the AU standards (pre-clarified standards) on the CPA Exam. The Clarity Project was created in an effort to streamline auditing standards content, and to merge U.S. standards with international standards. These changes to standards and terminology affect the following areas within Audit Reports:
-Unmodified Report(formerly Unqualified Report) for non-public companies/non-issuers, and Report for public companies (issuers), are now similar to the old Audit Report (3 paragraphs).
-Extra paragraphsare now called Emphasis-of-Matter and Other Matter paragraphs (previously called explanatory paragraphs).
-Each portion of the report will require its own Subheading.
-Division of Responsibility is now called Group Financial Statements.
-Qualified opinionsare now called Modified opinions (Qualified except for, Disclaimer, and Adverse).
- Slight revisions were made to the Governmental Auditing Standards (Yellow Book).
- Updates were made on the subject of U.S. standards vs. International AUD standards.
- PCAOB Auditing Standards (AS-16) regarding communications with Audit Committees became effective.
- American Taxpayer Relief Act of 2012 was fully integrated into the REG section.
- The Surtax on Unearned Income that resulted from the institution of the Patient Protection and Affordable Care Act (PPACA) was added.
- Adjustments were made to the Treasury Circular 230.
- Adjustments were made to the Federal Security Regulations as a result of the JOBS Act and Dodd Frank Rules enactments.
Business Environment and Concepts:
- Expanded information on the COSO's Internal Control Integrated Framework, which codifies 17 Principles of Internal Control, has been included.
- Dodd Frank Rule adjustments have been incorporated.
Financial Accounting and Reporting:
- Adjustments made to Governmental Accounting Chapter have been added due to updated GASB Statements
- Terminology changes were made in the Equity section, changing Net Assets to Net Position.
All students preparing to take the CPA Exam in the coming year should make sure to study the changes listed above. Roger CPA Review has accounted for all of these changes both in our new course materials for 2014 and in the free updates we provide for all current students.
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