IQEX Content Specification Outline 1 - Gleim Exam Prep · PDF fileSecured transactions (REG...

IQEX Content Specification Outline 1

I. Ethics, Professional and Legal Responsibilities in Tax Practice (10%-14%)A. Ethics and Responsibilities in Tax Practice

1. Treasure Department Circular 230 (REG 1.1)2. AICPA Statements on Standards for Tax Services (REG 1.3)3. Internal Revenue Code of 1986, as amended, and Regulations related to tax return

preparers (REG 1.2)B. Licensing and Disciplinary Systems (REG 1.4)

1. Role of state boards of accountancy2. Requirements of regulatory agencies

C. Legal Duties and Responsibilities1. Common law duties and liability to clients and third parties (REG 2.4)2. Federal statutory liability (REG 2.3)3. Privileged communications, confidentiality, and privacy acts (REG 2.5)

II. Professional Responsibilities in Audit and Accounting (2%-6%)A. Ethics and Independence

1. Code of Professional Conduct (AICPA) (AUD 2.1 – 2.6)2. Public Company Accounting Oversight Board (PCAOB) (AUD 2.7)3. U.S. Securities and Exchange Commission (SEC) (AUD 2.7)4. Government Accountability Office (GAO) (AUD 20.1)5. Department of Labor (DOL) (AUD 2.7)6. Sarbanes-Oxley Act of 2002, Title II (AUD 2.7)7. Sarbanes-Oxley Act of 2002, Title III, Section 303 (AUD 2.7)8. Code of Ethics for Professional Accountants (IFAC) (AUD 2.7)

B. Other Professional Responsibilities1. Sarbanes-Oxley Act of 2002, Title IV, (AUD 2.7)2. Sarbanes-Oxley Act of 2002, Title I (AUD 2.7)

III. Business Law (24%-32%)A. Agency

1. Formation and termination (REG 3.1, 3.4)2. Authority of agents and principals (REG 3.2, 3.3)3. Duties and liabilities of agents and principals (REG 3.2, 3.3)

B. Contracts1. Formation (REG 4.1 – 4.8)2. Performance (REG 4.9)3. Third-party assignments (REG 4.10, 4.11)4. Discharge, breach, and remedies (REG 4.12)

C. Uniform Commercial Code1. Sales contracts (REG 5.1 – 5.6)2. Negotiable instruments (REG SU 6)3. Secured transactions (REG 5.7 – 5.10)4. Documents of title and title transfer (REG 6.7)

D. Debtor-Creditor Relationships1. Rights, duties, and liabilities of debtors, creditors, and guarantors (REG 7.1 – 7.3, 7.7)2. Bankruptcy and insolvency (REG 7.4 – 7.6)

E. Government Regulation of Business1. Federal securities regulation (REG 2.1, 2.2)

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2. Other federal laws and regulations (antitrust, copyright, patents, money-laundering, labor, employment, ERISA) (REG 8.1 – 8.4)

F. Business Structure (Selection of a Business Entity)1. Advantages, disadvantages, implications, and constraints (REG 3.5, 3.6, 8.5, 8.6, 9.5)2. Formation, operation, and termination (REG 3.5, 3.6, 8.5, 8.6, 9.1, 9.2)3. Financial structure, capitalization, profit and loss allocation, and distributions (REG 3.5,

3.6, 8.5, 8.6, 9.2)4. Rights, duties, legal obligations, and authority of owners and management (REG 3.5,

3.6, 8.5, 8.6, 9.3, 9.4)

IV. Federal Tax Process, Procedures, Accounting, and Planning (6%-10%)A. Federal Tax Legislative Process (REG 10.1)B. Federal Tax Procedures (REG 10.2)

1. Due dates and related extensions of time2. Internal Revenue Service (IRS) audit and appeals process3. Judicial process 4. Required disclosure of tax return positions5. Substantiation requirements6. Penalties7. Statute of limitations

C. Accounting Periods (REG 13.1, 15.1, 18.1, 19.1)D. Accounting Methods

1. Recognition of revenues and expenses under cash, accrual, or other permitted methods (REG 13.1)

2. Inventory valuation methods, including uniform capitalization rules (REG 13.1, 14.1)3. Accounting for long-term contracts (REG 13.1)4. Installment sales (REG 13.1)

E. Tax Return Elections, Including Federal Status Elections, Alternative Treatment Elections, or Other Types of Elections Applicable to an Individual or Entity's Tax Return (REG 13.1, 15.1, 18.1, 19.1, 19.7)

F. Tax Planning (REG 10.3)1. Alternative treatments2. Projections of tax consequences3. Implications of different business entities4. Impact of proposed tax audit adjustments5. Impact of estimated tax payment rules on planning6. Role of taxes in decision-making

G. Impact of Multijurisdictional Tax Issues on Federal Taxation (Including Consideration of Local, State, and Multinational Tax Issues) (REG 13.7)

H. Tax Research and Communication (REG 10.1)1. Authoritative hierarchy2. Communications with or on behalf of clients

V. Federal Taxation of Property Transactions (8%-12%)A. Types of Assets (REG 14.1, 14.2, 14.5)B. Basis and Holding Periods of Assets (REG 14.1, 14.2)C. Cost Recovery (Depreciation, Depletion, and Amortization) (REG 15.4)D. Taxable and Nontaxable Sales and Exchanges (REG 14.6)E. Amount and Character of Gains and Losses, and Netting Process (REG 14.2, 14.3, 14.5)



F. Related Party Transactions (REG 14.3, 14.4)G. Estate and Gift Taxation (REG SU 20)

1. Transfers subject to the gift tax2. Annual exclusion and gift tax deductions3. Determination of taxable estate4. Marital deduction5. Unified credit

VI. Federal Taxation of Individuals (8%-12%)A. Gross Income (REG SU 11)

1. Inclusions and exclusions2. Characterization of income

B. Reporting of Items from Pass-Through Entities (REG 11.1)C. Adjustments and Deductions to Arrive at Taxable Income (REG SU 12)D. Passive Activity Losses (REG 12.4)E. Loss Limitations (REG 12.4)F. Taxation of Retirement Plan Benefits (REG 12.1)G. Filing Status and Exemptions (REG 13.2, 13.3)H. Tax Computations and Credits (REG 13.2 – 13.4)I. Alternative Minimum Tax (REG 13.5)

VII. Federal Taxation of Entities (18%-22%)A. Similarities and Distinctions in Tax Treatment Among Business Entities

1. Formation (REG 17.1, 18.1, 19.1)2. Operation (REG 15.1 – 15.3, 18.2, 19.2, 19.3)3. Distributions (REG 17.2, 18.3, 19.5)4. Liquidation (REG 17.4 – 17.6, 19.5, 19.6)

B. Differences Between Tax and Financial Accounting (REG 15.6)1. Reconciliation of book income to taxable income2. Disclosures under Schedule M-3

C. C Corporations1. Determination of taxable income/loss (REG 15.2 – 15.4)2. Tax computations, credits, and penalties, including alternative minimum tax (REG 13.4,

16.1, 16.2, 16.5)3. Net operating losses (REG 15.5)4. Entity/owner transactions, including contributions and distributions (REG 17.1, 17.2)5. Earnings and profits (REG 15.3, 16.7, 17.2)6. Consolidated returns (REG 16.3)

D. S Corporations1. Eligibility and election (REG 18.1)2. Determination of ordinary income/loss and separately stated items (REG 18.2)3. Basis of shareholder's interest (REG 18.2)4. Entity/owner transactions, including contributions and distributions (REG 18.3)5. Built-in gains tax (REG 18.4)

E. Partnerships1. Determination of ordinary income/loss and separately stated items (REG 19.2)2. Basis of partner's/member's interest and basis of assets contributed to the partnership

(REG 19.1, 19.2)3. Partnership and partner elections (REG 19.2)



4. Transactions between a partner and the partnership (REG 19.3)5. Treatment of partnership liabilities (REG 19.4)6. Distribution of partnership assets (REG 19.5)7. Ownership changes and liquidation and termination of partnership (REG 19.1, 19.2,

19.6)F. Trusts and Estates

1. Types of trusts (REG 20.1)2. Income and deductions (REG 20.1)3. Determination of beneficiary’s share of taxable income (REG 20.2)

G. Tax Exempt Organizations (REG 19.8)1. Types of organizations2. Obtaining and maintaining tax-exempt status3. Unrelated business income

VIII. Governmental and Not-for-Profit Accounting and Reporting (2% - 6%)A. Governmental Accounting Concepts

1. Measurement focus and basis of accounting (FAR 18.1)2. Fund accounting concepts and application (FAR 18.1)3. Budgetary accounting (FAR 18.2)

B. Format and Content of Comprehensive Annual Financial Report (CAFR)1. Government-wide financial statements (FAR 19.2)2. Governmental funds financial statements (FAR 19.3)3. Proprietary funds financial statements (FAR 19.4)4. Fiduciary funds financial statements (FAR 19.5)5. Notes to financial statements (FAR 19.1)6. Management's discussion and analysis (FAR 19.2)7. Required supplementary information (RSI) other than Management's Discussion and

Analysis (FAR 19.1)8. Combining statements and individual fund statements and schedules (FAR 19.1)9. Deriving government-wide financial statements and reconciliation requirements (FAR

19.3)C. Financial Reporting Entity Including Blended and Discrete Component Units (FAR 19.1)D. Typical Items and Specific Types of Transactions and Events: Recognition, Measurement,

Valuation, Calculation, and Presentation in Governmental Entity Financial Statements1. Net assets and components thereof (FAR 19.2)2. Fund balances and components thereof (FAR 18.1)3. Capital assets and infrastructure assets (FAR 18.1, 18.4)4. General long-term liabilities (FAR 18.1)5. Interfund activity, including transfers (FAR 19.5)6. Nonexchange revenue transactions (FAR 18.3)7. Expenditures (FAR 18.1)8. Special items (FAR 18.1, 18.2)9. Encumbrances (FAR 18.2)

E. Not-for-Profit (Nongovernmental) Accounting and Reporting1. Financial Statements including:

a. Statement of financial position (FAR 20.2)b. Statement of activities (FAR 20.2)c. Statement of cash flows (FAR 20.2)d. Statement of functional expenses (FAR 20.2)



2. Typical Items and Specific Types of Transactions and Events: Recognition, Measurement, Valuation, Calculation, and Presentation in Financial Statements of Not-for-Profit Organizations including:a. Support, revenues, and contributions (FAR 20.3)b. Types of restrictions on resources (FAR 20.2, 20.3)c. Types of net assets (FAR 20.2)d. Expenses, including depreciation and functional expenses (FAR 20.2)e. Investments (FAR 20.4)

IX. Corporate Governance (2% - 6%)A. Rights, Duties, Responsibilities, and Authority of the Board of Directors, Officers, and Other

Employees1. Financial reporting (BEC 1.1)2. Internal control (including COSO or similar framework) (BEC 1.2, 1.4)3. Enterprise risk management (including COSO or similar framework) (BEC 1.5)

B. Control Environment (BEC SU 1)1. Tone at the top – establishing control environment2. Monitoring control effectiveness3. Change control process


IQEX Content Specification Outline 1 - Gleim Exam Prep · PDF fileSecured transactions (REG...

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