Key CPA Exam Takeaways

High-Yield Review

• Special purpose engagements address reporting needs beyond general-purpose financial statements.
• Special purpose frameworks include cash, tax, regulatory, and contractual bases.
• Auditors may express opinions on individual financial statement elements.
• Forecasts use expected assumptions; projections use hypothetical assumptions.
• Prospective financial information does not guarantee future results.
• Integrated audits combine a financial statement audit with an audit of ICFR.
• Integrated audits result in separate opinions on financial statements and internal control.
• Material weaknesses generally result in an adverse opinion on internal control over financial reporting.
• CPA exam questions frequently compare forecasts, projections, and integrated audits.

Forecasts predict expected outcomes, projections evaluate hypothetical outcomes, and integrated audits evaluate both financial statements and internal controls.