The CPA Exam is no stranger to change. This year, the AUD Exam faces big changes, all of which fall under the initiative titled the Clarity Project. These changes will occur throughout Audit, predominantly with Audit Reports. No need to fret - Roger CPA Review is currently updating the Audit Course to reflect these new clarity standards, so you will be prepared come exam day.
The Clarity Project was created in an effort to make auditing standards more streamlined in their content, and to converge U.S. standard with international standards. Although there are changes to standards and terminology in numerous areas, here’s the scoop on the changes to the audit report:
- Unmodified report (old name was unqualified report) for Non-public companies/non-issuers.
- Report for Public companies (issuers) is similar to old Audit report – (3 paragraphs)
- Extra paragraphs are now called Emphasis-of-Matter and Other Matter paragraphs (previously called explanatory paragraphs).
- Each portion of the report will require its own Subheading.
- Division of Responsibility now called Group Financial Statements.
- Qualified opinions now called Modified opinions (Qualified except for, Disclaimer and Adverse).
Our Recommendation: Save yourself the extra trouble of familiarizing yourself with these updates. Sit for the AUD Exam before these changes take effect on July 1, 2013, and you’ll be sparing yourself a lot of additional study hours!
Do you have any questions about how the Clarity Project updates will affect you? Leave a comment on this blog and we will reply as soon as possible!