CPA Hot Topics – Spring 2015

Garrett Gleim sends CPA candidates informative 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.

Hello CPA candidates, and happy spring! I have two pieces of news to share with you today: (1) an announcement about a big release of questions to our CPA Exam test banks and (2) notice of some Q3/Q4 updates that may affect the materials you’re studying.

New Questions in Test Bank

The Gleim test bank, which is included in our CPA Review Systems, has been updated with new AICPA-released questions. We first add our signature correct and incorrect answer explanations to each, and then we place these questions in our live test banks for customers to access.

Auditing and Regulation Q3/Q4 Updates

These changes will be added to our materials in early June to help customers prepare for the Q3/Q4 version of the exam. Auditing updates will reflect SSARS 21 and AU-C 610, while Regulation updates will include changes to the annual amounts based on the tax laws effective January 1, 2015.


1. SSARS 21 – This update affects the material on compilation and review services in Study Unit 19. Summary: The ARSC released SSARS No. 21 in October 2014. The new, clarified pronouncement is effective for periods ending on or after December 15, 2015. However, because early implementation is permitted, it may be adopted for engagements performed on financial statements dated after October 2014. Thus, it is testable on the CPA exam beginning July 1, 2015.

SSARS 21 includes the following sections. Substantive changes for each section are noted.
AR-C 60: General Principles for Engagements – Material referencing the preparation of financial statements has been included.
AR-C 70: Preparation of Financial Statements – A report is not required for financial statements that fall under this section, even when they are expected to be used or provided to a third party. However, a legend or disclaimer stating that no assurance is provided must be added.
AR-C 80: Compilation Engagements – The submission requirement is eliminated. A report is always required for financial statements that fall in this section. The text of the report has been simplified.
AR-C 90: Review of Financial Statements – Most of the previous separately issued SSARSs on reviews have been integrated into this section.

2. AU-C 610 – This update affects Study Unit 4, Subunit 1. Summary: The ASB issued AU-C 610, Using the Work of Internal Auditors, in February 2014. The new, clarified pronouncement is effective for periods ending on or after December 15, 2014. No early application is permitted. Thus, it is testable on the CPA exam beginning July 1, 2015. The clarified pronouncement adds the requirement that the external auditor consider whether the internal audit function used a systematic and disciplined approach in their work when deciding whether to use the work of the internal auditor.


Gleim will be releasing comprehensive updates covering changes to our Tax material based on the tax laws effective January 1, 2015. These updates will include changes to annual amounts as well as an expansion of tax return disclosure material and coverage of IRC Section 263A.

With the Gleim Premium CPA Review System, your materials will always remain up-to-date under our Access Until You Pass Guarantee. If you have any questions regarding the updates we’ll be making to our materials or would like to discuss your CPA Exam preparation, simply reply to this email and we’ll be happy to assist you. Good luck with your studies!

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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