True Sale Opinions - What You and Your Auditor Need to Consider (Course Id 2087)

• Who is this course for?
  This course is designed for CPAs, accountants, auditors, or any professionals needing Continuing Professional Education (CPE), particularly those involved in evaluating or relying on true sale opinions.

• What is this course about or what problem does this course solve?
  The course addresses the complexities surrounding true sale opinions, clarifying their purpose, evaluation, and legal implications, particularly in the context of financial asset transfers and audits.

• How can the knowledge from this course be used?
  Learners will be able to recognize when a true sale opinion is needed, evaluate its validity, identify problematic language, and understand related audit implications.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding true sale opinions is critical for ensuring accurate financial reporting and compliance with legal standards, especially during audits or asset transfer evaluations.

• When is this course relevant or timely?
  This course is especially relevant when professionals encounter asset transfers or legal evaluations that require or involve true sale opinions, which may arise during audits or financial structuring.

• How is a course like this consumed or used?
  This is a self-paced online text-based course delivered via NASBA QAS self-study, with review questions and a final exam, requiring a passing score of 70% to earn CPE credit.

A true sale opinion is an attorney’s conclusion that transferred financial assets have been sold and are beyond the reach of a transferor’s creditors and that a court would conclude that the assets would not be included in the transferor’s bankruptcy estate.  There are many considerations related to these types of opinions, perhaps most importantly is how they are evaluated and whether they can be relied on as evidence.  In this course, we explore many of the burning questions as it relates to true sale opinions.

NASBA QAS - Text - NASBA Registry - 2087

Course Learning Objectives

• Recognize when a true sale opinion is generally required to be obtained
• Identify considerations regarding whether internal legal counsel can issue a true sale opinion
• List specific language that should not be included in a true sale opinion
• Recognize characteristics of a nonconsolidation opinion

Chapter 1 - True Sale Opinions - What You and Your Auditor Need to Consider

Course Learning Objectives

Course Overview

Introduction

What is a True Sale Opinion?

When Does a True Sale Opinion Come into Play?

Is a True Sale Opinion Really Needed?

Review Questions

What Matters are Evaluated in a True Sale Opinion?

Do I Automatically Fail the Legal Isolation Condition When No True Sale is Obtained?

Can Internal Legal Counsel Issue a True Sale Opinion?

What Should I Evaluate in a True Sale Opinion?

What Type of Language Would be Problematic?

Do I Also Need a Nonconsolidation Opinion?

Can You Rely on a Previously Issued True Sale Opinion?

What are the Audit Impacts from Restrictions on Use?

Review Questions

Glossary of Key Terms