Top Accounting and Auditing Issues for 2020 CPE Course: Module 2

Author: Lynn Fountain, Salvatore Collemi

This five CPE hour course reviews top auditing issues: Critical Audit Matters, New Service Level of Engagement for Attestation Engagements (SSAE 18), Understanding Blockchain for CPAs, Accountants and Practitioners, and Enhancing Audit Quality.

Publication Date: August 2019

Designed For
CPAs, Auditors, CFOs, Accountants, and Finance Professionals

Topics Covered

• Auditing Standard (AS) 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion
• CAM Definition and Purpose
• Criteria to Determine CAM Statement on Standards for Attestation Engagements No. 18 (SSAE 18)
• Service Organization Controls (SOC) attestations
• SSAE 16
• Blockchain technology
• Differences between Centralized, Decentralized and Distributed Networks

Learning Objectives

• Identify the PCAOB definition of a critical audit matter (CAM) and apply that understanding to audit issues
• Apply the separate criteria identified by the PCAOB for determining CAM issues
• Identify the PCAOB purpose for identification of CAM issues
• Recognize the appropriate methods for reporting CAMs in the auditor's report
• List the appropriate documentation requirements for identified CAM issues
• Understand and apply the concepts for proper disclosure of CAM issues
• Recognize appropriate interactions with the audit committee regarding CAMs
• Apply the proper concepts for explanatory concepts of CAMs
• Identify the variances between critical audit matters and key audit matters
• Evaluate, through a case scenario, the considerations for evaluating whether a CAM applies to a particular company
• Summarize the history of Service Organization Control (SOC) reports
• Describe the transition of the accounting standards from Statement on Auditing Standards (SAS) 70 to Statement on Standards for Attestation Engagements (SSAE) 16 and now SSAE 18
• Recognize the various types of service and subservice organizations
• Explore procedures to conduct a SOC 1 engagement, develop proper control objectives, and determine specific reporting methods
• Examine the variance and procedural requirements that exist between a SOC 1 Type I and SOC 1 Type II report
• Explore procedures to conduct and report on a SOC 2 engagement addressing information security, availability, processing integrity, confidentiality, and privacy of services
• Examine the variance and procedural requirements that exist between a SOC 2 Type I and SOC 2 Type II report
• Recognize the requirements for SOC 3 reports
• Recognize the requirements to prepare for a SOC engagement and a readiness assessment
• Identify specific changes related to monitoring controls at subservice organizations
• Explain the concept of a detailed risk assessment for subservice organizations
• Explain the concept and requirements of complementary controls
• Recognize the need for evidence provided by service organizations
• Describe the evolving world of blockchain technology
• Recognize the impact of blockchain on both the financial reporting process and the audit approach
• Identify the latest blockchain software being utilized
• Identify realistic solutions regarding the challenges of maintaining a high-level of audit quality with limited resources
• Recognize how to address systemic deficiencies noted in many accounting and auditing practices while at the same time balancing the needs of the public interest, regulators, and standard-setters
• Recognize how to comply with applicable U.S. and international accounting and auditing standards, quality control standards, corporate governance and risk management practices, and independence and professional ethics rules
• Identify clients' businesses and the environments in which they operate

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Auditing (5 hours)

Program Prerequisites
Basic knowledge of auditing principles.

Advance Preparation
None