Each set of financial statements and auditor’s report thereon must properly address the unique circumstances of the specific reporting entity’s circumstances. This module provides guidance for properly altering financial statements and audit reports for certain complex transactions and events that are often uncovered through general audit procedures, such as subsequent testing, reviewing minutes, and more.
Major Topics:
- Common reasons for modifying audit opinions
- Emphasis-of-matter or other-matter explanatory paragraphs
- General audit procedures to identify relevant transactions and events impacting financial statement presentation and disclosure
- Drafting relevant general footnotes, such as related party transactions, subsequent events, loss contingencies, and more
- Improving the footnote drafting process
Prerequisites
No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for drafting footnote disclosures and audit reports.
Learning Objective
- Explore and explain circumstances requiring audit report modifications and explanatory paragraphs.
- Identify and understand the importance of applying general audit procedures to identify relevant footnote disclosures.
- Discover and discuss how to improve evaluating disclosures for completeness and understandability.
Last updated/reviewed: March 26, 2024
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Learning Objectives for Audit Reporting Advanced Concepts 1:20
- Overview of Audit Reporting Requirements 15:15
- Exercise-What Type of Audit Report? 7:35
- Explanatory Paragraphs in Audit Reports 11:51
- Exercise-True/False Quiz 4:53
Disclosures
- Commitment and Contingency Disclosures 8:17
- Subsequent Events Disclosures 7:26
- Subsequently Discovered Facts 13:32
- Related Party Disclosures 5:09
Exercise
- Exercise-Drafting Footnotes 11:00
- Written Management Representations 3:47
- Improving the F/S Footnote Drafting Process 9:50
CONTINUOUS PLAY
SUPPORTING MATERIAL
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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