Daily Archives: July 30, 2013

aud cpa review emphasis of matter audit report

In our last auditing class, we went over the standard unmodified opinion word for word. And as I said, it’s essential that you memorize the unmodified opinion, word for word that is really how you begin your study of reporting issues, because you’ll find you come back to a time and again, because when you study what modifications Have you add to the unmodified opinion, it is so helpful if you know it called, and you could just zero in on the modifications, you’ll find it helps you, time and again. Now, what we want to get into in this class is something that we might add to the unmodified opinion. For example, we might add to the unmodified opinion, an emphasis-of-matter paragraph, an emphasis-of-matter paragraph would come in after the opinion paragraph, it’s not modifying the opinion. Let me say that again: when there’s an emphasis-of-matter paragraph. It comes […]

far cpa review allowance method bad debt

If a company is bad debt expenses that are a material item on the income statement. They are required to use the allowance method of accounting for bad deaths in the allowance method. We’re going to estimate the accounts that we think will go bad, and set up a provision on our balance sheet on an allowance, on our balance sheet for the accounts that we think will go bad. So it’s a very different approach the allowance method because now we estimate the accounts we think we’ll go back and set up an allowance on our balance sheet for the accounts we think we’ll go back. Now, before we look at some problems I will tell you that there’s one thing that a lot of students forget in the CPA Exam on allowance for bad debts. A lot of students forget that there are two approaches to the allowance […]

reg cpa review elements of contract

This is Elements of a Contract for the CPA Exam, and I’m Jack Norman, I’ve told you that there are seven key elements that are required to have a valid and enforceable contract. And here I’ve got a mnemonic for you that is going to become impressed upon your brain. For contract law on the CPA Exam. A cold sip of cola. A cold sip of cola. Now, this stands for A. The agreement, two parties must come to an agreement. See, consideration is required to have a valid and binding contract. As the statute of frauds, certain contracts must be in writing in order to be valid. Not all contracts must be writing but some must comply with a statute of frauds. C stands for the capacity. This is the ability of each of the parties to actually enter into a binding and enforceable contract. The O stands for […]

bec cpa review corporate governance

Welcome back to the Corporate Governance section of BEC for Bisk CPA Review online learning, I’m Jennifer Louis, CPA and we’re going to talk a little bit more about the specific qualities, duties, and responsibilities of the board of directors. If it’s been a while before, since you looked at the first section that dealt with definitions of what a board of directors is, I’d like you to go back and revisit that really briefly just look through the outline refresh yourself and remind yourself about what the definitions are for the different terminologies that you’re going to be hearing as we go through the section and then come back and pick up this BEC CPA Exam section. So the qualities necessary for a board of directors is to make sure that they have, what’s necessary to oversee the organization and particularly as we’re thinking about from an audit perspective, […]

aud cpa review unmodified opinion audit report

In this auditing class, we’re really going to be talking about Step Six in the audit process. When we form our audit opinion and issue our audit report and you know what the client wants you to know that what the client wants out of any audit. He wants an unmodified opinion. He wants a clean opinion. An unmodified opinion. So I think that’s a good place for us to start. How does your client deserve an unmodified opinion? How does your client earn an unmodified opinion? How was it earned well, to get an unmodified opinion? It’s really very simple. The client has to meet six requirements to get an unmodified opinion. Six requirements, number one, there can’t be any significant departures from U.S. GAAP, no significant departures from us, generally accepted accounting principles or whatever financial reporting framework we’re testing it would be IFRS, but in this class. […]

far cpa review cash accounts receivable

Welcome back. In this FAR CPA Review class, I want to begin our discussion of the asset side of the balance sheet. Let’s start with cash. Now there’s not a lot to study with cash but there are a few things that you have to be careful about first of all what you put in a balance sheet. Under the heading cash must be money. That is free and clear and available to be spent in current operations. Please remember that’s what cash is money that’s free and clear and available to be spent in current operations. So what do you have to be careful about in the FAR exam. Well if there’s some reason you can’t spend cash you have to back that out, you know, watch out for a security deposit on a long term project. If you see a security deposit on a long term project, you […]


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