Accounting and Auditing Standards Update (24 Hrs)

Chapter 1: Selected Accounting Standards Updates (ASUs)

After studying the Chapter 1 course material, you will be able to:

• Recognize examples of internal-use software
• Identify criteria to begin and end capitalization of internal-use software
• Review how to determine the accounting acquirer in a business combination
• Recognize how to account for forfeitures related to share-based consideration payable to a customer
• Recall some of the new disclosures for income taxes required by ASU 2023-09
• Identify how to measure a crypto asset
• Review how to measure and record a crypto asset on the balance sheet and income statement
• Review how to measure and account for a joint venture
• Recognize the type of entity which is subject to the new disaggregation of expenses disclosures required by ASU 2024-03
• Identify a new method that is authorized to record treasury stock in accordance with ASC 505

Chapter 2: The New Allowance for Credit Losses: ASU  2016-13: Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments, Including newly issued ASU 2025-05)

After studying the Chapter 2 course material, you will be able to:

• Recognize examples of assets that are and are not subject to the ASC 326-20 expected credit loss model
• Recognize the model that ASU 2016-13 uses to deal with credit losses
• Recall how an entity should present the new allowance for credit losses on the balance sheet
• Identify examples of entities that are under common control
• Recognize two elections that can be made under ASU 2025-05
• Recall how subsequent collections of trade receivables are measured in the year-end allowance balance
• Identify how a decline in a held-to-maturity debt security is accounted for
• Recognize the new impairment model for available-for-sale debt securities under ASC 326-30
• Recognize some new and not new disclosures under ASU 2016-13

Chapter 3: Current Developments: Accounting and Financial Reporting – 2026

After studying the Chapter 3 course material, you will be able to:

• Identify one of the top individual reasons for financial statement restatements
• Recognize how to measure an investment in gold under GAAP
• Identify a challenge that may exist if a company uses the AICPA’s FRF for SMEs
• Recall the general GAAP rule for management’s evaluation of going concern
• Review the SEC’s rule for ESG disclosures
• Recognize one of the two approaches that are used to record revenue under the revenue standard
• Identify a reason why a company may wish to hold sales prices when there is an increase in the cost of purchases due to tariffs
• Identify a method that can be used to record variable consideration under the revenue standard
• Identify a loan covenant most directly impacted by an increase in the interest rate
• Recognize a threat that exists with certain banks
• Recognize the disclosure required for a start-up company

Chapter 4: The Lease Standard: Post-Implementation Issues – 2026 Edition

After studying the Chapter 4 course material, you will be able to:

• Recognize a key change made to GAAP by the new lease standard
• Identify a type of lease that exists for a lessee under ASU 2016-02
• Recall a type of lease for which the ASU 2016-02 rules do not apply
• Identify a threshold for a lease term to be considered a major part of an asset’s remaining economic life
• Recognize who an entity might not want to use the risk-free rate to compute the present value of lease payments
• Identify how a lessee should account for initial direct costs
• Recognize items that are and are not components of a lease term
• Recall the IRS rules as when an entity should and should not capitalize a lease for tax purposes

Chapter 5: GAAP and Financial Reporting for Selected Income Tax Issues- Including Changes Made by the OBBBA- 2026

After studying the Chapter 5 course material, you will be able to:

• Identify a factor that primarily explains the decline in the federal effective taxes paid rate for C corporations under OBBBA beginning in 2025
• Review the tax treatment for domestic research and experimental (R&E) expenditures found in OBBBA of 2025
• Review how to present the tax benefit from using an NOL on the income statement:
• Identify a feature of Section 1202 stock that was expanded by the OBBBA to encourage C corporation conversion or formation
• Recall how to present the adjustment of the deferred tax asset and liability from a change in tax status from S to C corporation
• Recall when an auditor must quantify the effect of a GAAP departure in the audit report
• Identify types of carryforwards for which deferred tax assets must be recognized
• Review the disclosures that are required by a nonpublic entity when it has not recorded any uncertain tax positions
• Recall how an entity should account for the PTE tax on its financial statements
• Review the rule as to whether a Company is required to allocate consolidated income tax expense to its single-member LLCs that do not pay taxes

Chapter 6: Compilation and Review Update and Review – 2026

After studying the Chapter 6 course material, you will be able to:

• Identify services that are and are not considered consulting services engagements
• Recognize the standards to follow in preparing financial statements as part of a consulting services engagement
• Identify which party is responsible for determining that engagement team members have appropriate competence and capabilities to perform a SSARS engagement
• Recognize the definition of materiality found in SAS No. 138
• Identify a threshold in a review engagement under which an accountant is not required to accumulate misstatements.
• Recall the least profitable engagement to perform
• Identify the type of reporting an accountant should perform when management elects to include disclosures about a few matters in the notes
• Identify a recommendation to mitigate the risk associated with performing bookkeeping services
• Review actions that would and would not impair an accountant’s independence
• Recognize bookkeeping functions that would impair independence, and

Identify a key factor in determining whether the performance of a nonattest service impairs an accountant’s independence.

Chapter 7:  SAS Nos. 146-149: Recently Issued Auditing Standards

After studying the Chapter 7 course material, you will be able to:

• Recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
• Identify certain requirements an engagement partner must satisfy in performing an audit engagement
• Recognize examples of resources assigned or made available by a firm to support performance of an audit engagement
• Identify a type of unconscious bias defined in SAS No. 146
• Identify when a successor auditor should request management to authorize a predecessor auditor’s response to the successor auditor’s inquiry
• Recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
• Recall the extent of a predecessor auditor’s response to a successor auditor’s inquiries when there are certain restrictions on the predecessor auditor.
• Identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits.
• Recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit.
• Identify the party required to take overall responsibility for the quality on a group audit engagement in accordance with SAS No. 149.