Becker CPA Review
Audit B Flashcards Errata/Clarifications
2013 Exam Edition
NOTE TO STUDENTS: On March 9, 2013, the AICPA notified the review course providers that it will test
both the old SAS and the Clarified SAS on the Auditing exam starting on July 1, 2013. The AICPA has
not given a definitive time period for this dual-testing, but has stated that it will continue until the Clarified
SAS fully replace the old SAS (most likely at the end of 2014). The good news is the Becker is wellpositioned to prepare you for the Auditing exam during this period of transition from the old SAS to the
Clarified SAS. Our Audit B textbook (Clarified SAS), is essentially the Audit A textbook (old SAS) with
enhancements to cover the new/clarified provisions of the Clarified SAS. Only a few key items from the
old SAS are not included in the Audit B textbook. We have noted those items in the detail provided
below.
Date
4/26/13
Lecture and
Topic
Errata/Clarifications
Audit 1
The Clarified SAS outline the overall objectives of the auditor and the
general requirements related to the conduct of the audit, but do not include
the ten Generally Accepted Auditing Standards that were the framework
for the old SAS. The AICPA has stated that it will continue to test the 10
GAAS standards through 2014.
Click here for a link to flashcards covering the 10 GAAS standards.
The Clarified SAS outline a new, more detailed form of auditor’s report that
should be used for audits of NONISSUER financial statements for periods
ending on or after December 15, 2012. This new auditor’s reporting model
is outlined on pages A1-12 to A1-44 of the Audit B textbook. The AICPA
has stated that it will continue to test the old auditor’s reporting model
through 2014.
Click hereand Click here for a link to flashcards covering the old auditor’s
report
4/26/13
Audit 1
The old auditor’s report should be used for audits of:
•
•
NONISSUER financial statements for periods ending before
December 15, 2012
ISSUER financial statements for all periods, until the PCAOB
issues its new auditor’s reporting model (most likely in late 2013 or
early 2014)
The AICPA has stated that exam questions related to the auditor’s report
will make it very clear which audit report should be used.
4/25/13
Audit 3
In the Clarified SAS, the AICPA replaced the concept of illegal acts
outlined in the old SAS with the broader concept of compliance with laws
and regulations. Because the AICPA has stated that it will continue to test
the old SAS through 2014, it is possible that questions that make specific
reference to illegal acts will appear on the CPA exam.
Click here for a link to flashcards covering illegal acts.
Becker CPA Review
Audit B Flashcards Errata/Clarifications
2013 Exam Edition
Date
Lecture and
Topic
Errata/Clarifications
SAS 127 will be testable starting July 1, 2013. The following edits
(changes highlighted) need to be made to make your flashcards consistent
with SAS 127:
Flashcard Audit 1-12 (Version B)
Front:
Define a component auditor and identify the three two requirements that
are necessary to reference a component auditor in the auditor’s report.
4/25/13
Audit 1
Back:
A component auditor is an auditor who performs work on the financial
information of a component that will be used as audit evidence for the
group audit. The component auditor may be part of the group
engagement partner’s firm, a network firm, or another firm.
Reference to the component auditor in the auditor’s report can be made if:
•
•
The component’s financial statements are prepared using the
same financial reporting framework as the group financial
statements.
The group engagement partner has determined that the
component auditor has performed an audit in accordance with the
relevant requirements of GAAS, or when required, the PCAOB.
The component auditor’s report is not restricted use.
SAS 127, issued January 2013, includes amendments add any other basis
of accounting that uses a definite set of logical, reasonable criteria that is
applied to all material items appearing in financial statements to the list of
acceptable special purpose frameworks. SAS 127 will be testable starting
July 1, 2013. The following edits (changes highlighted) need to be made
to make your Audit flashcards consistent with SAS 127:
Flashcard Audit 2-5 (Version B)
4/25/13
Audit 2
Front:
Give examples of special purpose frameworks.
Back:
•
•
•
•
•
Cash basis
Tax basis
Regulatory basis
Contractual basis
Any other basis of accounting that uses a definite set of logical,
reasonable criteria that is applied to all material items appearing in
the financial statements