CPA Hot Topics 09/21/12 – Clarity Standards

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.

As I touched upon in my last Hot Topics, the Auditing and Attestation section of the CPA exam will change the most among the four sections in 2013. In this week’s Hot Topics, I want to go into a bit more detail about these changes and the impetus behind them.

To make U.S. generally accepted auditing standards (GAAS) easier to read, understand, and apply, the AICPA’s Auditing Standards Board (ASB) undertook a clarity project. The result was a redrafting of its standards into a new Codification of Statements on Auditing Standards. The ASB’s standards have been reorganized and rewritten, and duplication has been removed. The new standards significantly converge with but are not identical to the equivalent International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board. Each clarified statement has the following format:

  • Introduction
  • Scope
  • Effective date
  • Objectives
  • Definitions (if relevant)
  • Requirements
  • Application and Other Explanatory Material (A1, A2, etc.)

Almost all the new standards are effective for periods beginning after December 15, 2012. Thus, the clarified standards are eligible to be tested on the CPA exam beginning in July, which is the third window of testing.

Gleim wants your CPA exam experience to be as uncomplicated as possible. Therefore, we suggest that you plan to take your Auditing exam by the end of the January/February window in 2013 so you do not have to worry about learning the new clarified standards. Of course, if you are unable to take your Auditing section before the new standards are testable, you will be fully prepared if you use the complete Gleim CPA Review System and study with our special edition Auditing materials, which will be released in the spring of 2013. As always, candidates who have purchased the Gleim Review System will be eligible to qualify for replacement material if the new edition is released prior to their completion of the corresponding section(s).

Do you have any questions or comments about this week’s Hot Topics article or the CPA Exam? Email me at 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 Take advantage of the opportunity to get help from our extraordinary team!

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