Engaging with Specialists: Supporting Complex GAAP Estimates and Auditor Expectations (Course Id 2752)

• Who is this course for?
  This course is designed for CPAs and accountants needing Continuing Professional Education (CPE), particularly those involved in financial reporting and complex accounting estimates.

• What is this course about or what problem does this course solve?
  The course addresses the challenge of supporting complex GAAP estimates by guiding professionals on when and how to engage valuation, legal, actuarial, or tax specialists, and how to meet auditor expectations.

• How can the knowledge from this course be used?
  Learners can use the knowledge to appropriately involve specialists in high-risk or complex accounting areas, evaluate their work, ensure proper documentation, and effectively communicate with auditors.

• Why is this course important to a CPA or Accountant?
  It is important because it enhances a CPA or accountant’s ability to navigate complex accounting transactions with expert input, ensuring compliance and accuracy in financial reporting.

• When is this course relevant or timely?
  The course is relevant when dealing with transactions involving business combinations, impairments, share-based compensation, or legal and environmental contingencies—areas often scrutinized in audits.

• How is a course like this consumed or used?
  This course is consumed through QAS self-study and includes a comprehensive text and a final exam that must be passed to earn CPE credit.

This course focuses on the use of specialists in financial reporting and the accounting areas where their input is often necessary. It helps CPAs recognize when to engage valuation, legal, actuarial, or tax experts to support management’s assumptions in complex or high-risk areas. The course covers transactions such as business combinations, impairments, share-based compensation, and legal or environmental contingencies. It also explains how to evaluate a specialist’s work, document key judgments, and respond to auditor expectations. This course provides lasting insight into the intersection of technical accounting and expert input, helping professionals navigate complexity with confidence. 

NASBA QAS - Text - NASBA Registry - 2752

Chapter 1
Understanding the Role of Specialists in Accounting

• Recognize circumstances where management may need to engage a specialist
• Differentiate between the types of specialists commonly used in financial reporting
• Identify the requirements with respect to evaluating a specialists qualifications
• Distinguish between management’s responsibilities and the specialist’s role
• Recognize accounting topics and transactions where specialist input is frequently applied

Chapter 2
Transactions Involving Valuation and Economic Specialists

• Recognize transactions that commonly require valuation specialist involvement
• Identify key valuation assumptions that affect the measurement of various financial reporting areas
• Identify accounting scenarios where use of a valuation report may be expected by auditors or regulators

Chapter 3
Transactions Involving Legal, Actuarial, and Tax Specialists

• Identify circumstances where legal counsel input is necessary to assess loss contingencies
• Recognize the role of actuaries in measuring pension and postretirement benefit obligations
• Determine when the use of a valuation specialist is appropriate in share-based payment arrangements
• Recognize the importance of coordination between legal, tax, and accounting professionals

Chapter 4
Reviewing Specialist Work and Interactions with Auditors

• Recognize management’s responsibility to evaluate the appropriateness of a specialist’s work
• Identify documentation practices that support the use of specialists in financial reporting
• Determine the types of inquiries auditors may make regarding management’s use of a specialist
• Recognize when and how auditors engage specialists
• Distinguish between acceptable and unacceptable reliance on third-party reports

Chapter 1 - Understanding the Role of Specialists in Accounting

Learning Objectives

Chapter Overview

Introduction

What is a Specialist?

Drivers Behind Specialist Use

Evaluating Specialist Qualifications

Common Types of Specialists in Accounting

Standards that Reference or Imply Specialist Use

Roles and Responsibilities

Risks of Not Engaging a Specialist

Common Misconceptions

Cost Considerations

Engagement Process

Conclusion

Review Questions

Chapter 2 - Transactions Involving Valuation and Economic Specialists

Learning Objectives

Chapter Overview

Introduction

Business Combinations

Goodwill

Fair Value Measurements

Asset Retirement Obligations

Other Valuation Examples

Conclusion

Review Questions

Chapter 3 - Transactions Involving Legal, Actuarial, and Tax Specialists

Learning Objectives

Chapter Overview

Introduction

Legal Contingencies

Environmental Liabilities

Defined Benefit and Other Postretirement Plans

Share-Based Compensation

Uncertain Tax Positions and Valuation Allowances

Conclusion

Review Questions

Chapter 4 – Reviewing Specialist Work and Interactions with Auditors

Learning Objectives

Chapter Overview

Introduction

Management’s Role in Evaluating Specialist Work

Documentation Expectations

Communicating with Auditors About Specialists

When the Auditor Engages a Specialist

Common Pitfalls & Lesson Learned

Conclusion

Review Questions

Glossary of Key Terms