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Tuesday, February 5, 2013

2013 Audit Changes! Clarifying the Clarity Project.

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!

12 comments:

duuuuuuu said...

what happens if i buy the AUD package and don't pass before the changes are made? are there free updates or will i need to buy it again for the updated materials?

Staff at Roger CPA Review said...

Hi there,

All current students will be provided the necessary updated information electronically through their Student Account.

Best,
The Staff at Roger CPA Review

Anonymous said...

These are all the changes, or are those the changes to the format of the report only?

Are there any changes to the planning or evidence gathering parts?

The Staff at Roger CPA Review said...

Hi there,

Our webcast on the 2013 Clarity Project will provide you more details about all that is being changed:

http://www.rogercpareview.com/webcast/archive/index.cfm?video=ClarityProject

- The Staff at Roger CPA Review

Anonymous said...

How do I know if the videos I am watching is for the exam before or after the changes?

Anonymous said...

AICPA said they would continue the old format throughout 2014. So should I study for the old format or the new format?

Roger Philipp said...

Q: How do I know if the videos I am watching is for the exam before or after the changes?
A:If you're referring to the lectures- your online student platform should be able to tell you whether or not the videos reflect the new changes. Please be sure to email staff@rogercpareview.com if it is unclear.

Q: AICPA said they would continue the old format throughout 2014. So should I study for the old format or the new format?
A: According to the AICPA, changes to the Auditing Section of the CPA Exam should start July 1, 2013. The differences on the CPA Exam will appear in the third testing window of 2013. Since that window has passed, the changes will start appearing going forward.

Anonymous said...

Is it at all possible that since I'm in the conclusive stages of the AUD prep, I finish with the pre-update stuff and then familiarize myself with the clarity project and other smaller subjects on the side? Or are these updates important for the entire preparation, as in, I will see effects throughout my preparation in various matters?

Roger Philipp said...

Hi Anonymous-

This is in response to your question about the clarity project:

That sounds like a good approach. However, we do believe that you should try practicing with the new updates that you learn. Please see our blog on the Clarity Project for more information: http://blog.rogercpareview.com/2013/03/clarity-project-example-audit-report.html

If you have any other questions, you can email staff@rogercpareview.com

-Roger CPA Review Staff

Anonymous said...

If i have the USB course (offline lectures) how can I get updated lectures that reflect the changes?

Roger Philipp said...
This comment has been removed by the author.
Roger Philipp said...

Hi Anonymous:

To respond to your question about the offline USB lectures:

We put updates in each student’s online student account. Here's how you can find updated lectures:

1. Log in to your student account
2. Locate “Important video updates” and “Lecture Book Updates” (Roger textbook) in your online account
3. Textbook updates can be download/printed.
4. We do not physically up[date the offline lectures at this time.

Hope that helps you out!

Roger CPA Review Staff