Auditing Developments - v16 (Course Id 2922)

• Who is this course for?
  This course is designed for CPAs, accountants, auditors, and other professionals seeking Continuing Professional Education (CPE) who have a general understanding of auditing standards and want to stay current with the latest auditing developments affecting 2025 and 2026 engagements.
• What is this course about or what problem does this course solve?
  This course explains the latest auditing standards, engagement issues, and regulatory developments impacting 2025 and 2026 audits, including fraud, going concern evaluations, audit evidence, risk assessment, audit efficiency, auditor liability, employee benefit plan audits, and newly issued SAS Nos. 143–149, helping auditors apply current guidance in practice.
• Where can the knowledge from this course be used?
  The knowledge gained from this course can be applied during planning, performing, documenting, and reporting audit engagements across a wide range of organizations, including financial statement audits, compliance audits, employee benefit plan audits, and other assurance engagements.
• Why is this course important to a CPA or Accountant?
  This course helps CPAs and accountants remain current with significant auditing standards and practice developments, improve audit quality and efficiency, strengthen fraud and risk assessment procedures, address evolving engagement challenges, and enhance compliance with current professional auditing requirements.
• When is this course relevant or timely?
  This course is especially relevant for professionals performing or preparing for 2025 and 2026 audit engagements, as it focuses on current economic conditions, emerging audit risks, recently issued auditing standards, and evolving professional guidance affecting today's audit environment.
• How is a course like this consumed or used?
  This self-study text course is completed by reading the course materials, reviewing the included review questions for reinforcement, and successfully passing the final examination to earn CPE credit.

The objective of this course is to address the latest developments affecting 2025 and 2026 audit engagements.

Topics include: addressing the auditor’s consideration of the business and economic environment in which the client operates; accounting and auditing engagement issues in 2025 and 2026 including an entity’s ability to continue as a going-concern; client and employee fraud; specific accounting risks for auditors to consider; limiting auditor’s liability; key audit focus areas during volatile times; lessons from litigation; efficiency engagements to reduce auditor time; various practice issues related to audits; dealing with DOL audits of employee benefit plans; and more.

Additionally, in this course, auditors will learn about obtaining audit evidence, changes made to the auditor’s understanding of the entity and its environment, risk assessment procedures, using the work of specialists as audit evidence, changes to compliance audits, and more. These changes are found in newly issued SAS Nos. 143-149.

The course focuses on recalling, recognizing and identifying rules related to auditing standards including new developments pertaining to those standards.

Section 1 - Auditing Developments - Part 1 to Part 9

After reading the Section 1 course material, you will be able to:

• Review the method used to estimate credit losses under ASU 2016-13
• Recognize the two elections ASU 2025-05 requires if an entity wishes to use subsequent collections to measure the year end allowance account for accounts receivable.
• Identify how to account for the PTE tax on company financial statements
• Identify a scenario in which it would be impracticable for an auditor to attend a physical inventory
• Recognize an advantage of remote auditing
• Recognize a behavioral trait of most occupational fraudsters
• Recognize the difference between fraud and an error
• Recall the three conditions of the fraud triangle
• Identify common types of financial statement fraud noted by the FBI
• Recognize an example of a misappropriation of assets
• Identify an additional procedure required to deal with the risk of management override of internal controls
• Recognize a factor to consider in evaluating going concern of an entity
• Recall how an investment in equity security should be accounted for under GAAP
• Recognize the new sales tax rules in the wake of the Wayfair decision
• Recognize an example of a coverage ratio
• Recall the timeframe within which most lawsuits against auditors occur
• Identify a recommendation to tighten up auditor workpapers

Section 2 - Auditing Developments - Part 10 to Part 16

After reading the Section 2 course material, you will be able to:

• Identify a suggestion for an auditor reducing time and increasing audit efficiency
• Recognize when negative accounts receivable confirmations should not be used
• Identify the form of a comfort letter that would be appropriate for an accountant to make to a lender
• Recall the rule for an auditor presenting his or her city and state on the audit report
• Identify the rules for an auditor communicating deficiencies found in an audit
• Recognize an example of a result that can occur if there is a problem with a DOL employee benefit plan audit
• Identify a type of fraudster
• Identify how inherent and control risk should be assessed under the SAS No. 143 requirements
• Recall the three approaches that an auditor can use to perform further audit procedures required by SAS No. 143
• Identify some instances in which an auditor may conclude that a specialist’s work is not adequate 
• Identify a type of risk assessment procedure that an auditor can use in accordance with SAS No. 145
• Recall examples of risk assessment procedures that an auditor may perform in SAS No. 145
• Recognize how to perform risk assessment procedures when relying on information obtained from previous experience with an entity
• Identify examples of risk assessment procedures to obtain audit evidence in accordance with SAS No. 145
• Recognize a new requirement made by SAS No. 145 in connection with assessing inherent risk and control risk in an audit, and
• Identify how an auditor should respond if the auditor does not plan to test the operating effectiveness of an entity’s controls
• 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
• Recall a possible action that an engagement team may take to mitigate impediments to exercise professional skepticism
• 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
• Recognize one of the five components of a system of internal control identified in SAS No. 145 and incorporated into Au-C 935 by SAS No. 148 amendments
• 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.