CPA Hot Topics 05/19/11 – New References

Garrett Gleim sends CPA candidates bimonthly emails concerning different aspects of the CPA exam. Candidates can see the most recent email and all the archives here on the CPA Candidate Forum.

I recently received an email from the AICPA regarding some new changes to the CPA exam References as cited in the Content Specification Outlines. These changes are effective beginning July 1, 2011; they will not affect the April/May testing window at all. The list of changes is also posted on the CPA Examination Content section of the AICPA’s website.

Below, I have summarized these changes and how they will affect you as you prepare for your exam.

First, though, please note the following important point: These changes are to the References only; they do NOT affect the Content Specification Outlines themselves. According to the AICPA, these References are “selected publications that candidates may study to prepare for the Uniform CPA Examination.” In other words, neither the actual technical content nor the weight allocations of the CPA exam are changing. At Gleim, we are using this information to consider how these References might be used to create new CPA questions, and we are updating our material where necessary (see below).

For CPA FAR, the following four citations were added:

1. Regulation S-K. This regulation covers requirements for nonfinancial information (disclosures) in SEC filings. Gleim FAR Review currently covers this item in Study Unit 1, Subunit 10.

2. AU 623, Special Reports (source of OCBOA). We currently cover (but do not cite) this standard in Study Unit 2, Subunit 5.

3. FASB and GASB Concepts Statements. This addition simply rectifies the omission of these citations from the January 1 CSO Reference list. These statements are explicitly covered throughout the Gleim CPA FAR materials.

4. IFRSs Framework. This item corresponds to FASB and GASB Concepts Statements and again rectifies a prior omission from the CSO Reference list. Thus, these statements are also explicitly covered throughout the Gleim CPA FAR materials.

For CPA AUD, the following citation was added:

1. International Standards on Auditing (ISAs). This addition simply rectifies the omission of this citation from the January 1 CSO Reference list. These standards are explicitly covered throughout the Gleim CPA AUD materials.

For CPA REG, the following three citations were added:

1. Public Law 86-272. This is the Interstate Income Act of 1959, which restricts States’ taxation of interstate commerce. Although this is not a Federal Tax issue, it falls under the Regulation CSO item “Impact of Multijurisdictional Tax Issues on Federal Taxation.” We will provide an update within the next 2 weeks with a new subunit (13.7: Multiple Jurisdictions) that will include coverage of this topic.

2. Uniform Division of Income for Tax Purposes Act. This act presents rules for allocation/apportionment of business income among multiple states. Related principles about business income are addressed throughout the Gleim REG material, but in addition we will provide an update within the next 2 weeks with a new subunit (13.7: Multiple Jurisdictions) that will include coverage of this topic.

3. Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This Act was a response to a near depression. We will provide an update within the next 2 weeks to Study Unit 2, Subunit 1 (securities regulation) to add brief coverage of this topic.

Also for CPA REG, the following two citations were removed:

1. AICPA Code of Professional Conduct. The removal of this item simply rectifies the inclusion of this citation in the January 1 CSO Reference list. This item is covered appropriately in the Gleim CPA AUD materials.

2. AICPA Model Tax Curriculum. The removal of this item was most likely just an act of “housekeeping.” Gleim knows of no reason it was ever included in the Reference list.

For CPA BEC, the following two citations were added:

1. COBIT (Control Objectives for Information and related Technology). Gleim CPA BEC materials currently cover this item in Study Unit 14, Subunit 1.

2. International Standards for the Professional Practice of Internal Auditing. Gleim covers the topic of internal auditing in CPA BEC in Study Unit 1, Subunit 1. We will provide an update within the next 2 weeks to expand this section in order to include these international standards in our coverage.

Again, these changes affect only the References. There really were no major surprises in these changes, and we do not see anything that will dramatically change the exam. Do not be overly concerned with this information. Simply follow our study plan, and you will be successful on the CPA exam!

Do you have any questions or comments about this week’s Hot Topics article or the CPA Exam? Email me at hottopics@gleim.com. Gleim Personal Counselors are available to help you develop a manageable study schedule and help you pass the CPA exam. Contact them at 800.874.5346, ext 498 or personalcounselor@gleim.com. Take advantage of the opportunity to get help from our extraordinary team!

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