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CPA CFE 2020 Canada

 

CPA CFE Sept 2020

You all are now busy with the final preparation of your exam in September 2020. Identifying issues and providing in depth response is the key to success in case writing particularly for Financial Reporting. I advise you to follow IAAR approach for depth of the issue. Identify it, analyze it providing reasons for the issue, provide options if any to resolve it and then your valid and correct recommendation based on your analysis. Many students are facing problem to reach up to C and CD level on account of lack of technical knowledge. CPA want speed, accuracy and use of professional judgement in variety of case situation. Make enough practice to see that you can read, understand, and identify all issues with point wise analysis in 30 percent of available time in case writing to get success at the final exam.

One of the important issues in present scenario is going for IPO by the private corporation. See the following important points you are required to mention in your response.

Implications of Going For IPO:

  1. Look into the existing business environment, bottom line and future prospectus for the company, SWOT analysis and or M D & A will be useful tools for managerial decision. See the implication form long term and short-term point of view
  1. Need to check about loss of control on account of issue of new shares
  1. From audit perspective, audit cost will increase on account of more users and reporting of extra requirements due to IFRS. This is also on account of preparation of prospectus and consent of auditor before publishing interim financial statements. More accurate and reliable financial

information is required due to more users. IT system may need to be updated and or revised.

  1. High cost of underwriter, advertisement, and cost related with listing requirement            applicability of IFRS, comparative information for earlier year and requirement of                additional   information in the notes to FS
  1. Option for fair valuation of PPE and its impact on financial statements and on share price
  1. Tax payable method of accounting is not allowed in IFRS, and as such future lax assets/liability  will be worked out and recorded in FS
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