Many small- and mid-size entities hold less complex investments, including mutual funds, ‘plain vanilla’ derivatives (such as interest rate swaps), and permanent life insurance policies. This module will provide an overview for evaluating the proper recognition, measurement, and disclosure of the most common investment types.
Major Topics:
- Overview of the most common investment types
- Typical audit risks and related audit procedures for common investments
- The basics of accounting for equity investments in other entities
- Understanding common ‘plain vanilla’ derivatives, like interest rate swaps
- Fair value disclosure, including applying the fair value hierarchy
Prerequisites
No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for accounting for or auditing less-complex investments, including ‘plain vanilla’ derivatives.
Learning Objective
- Explore and explain typical audit risks associated with auditing the most common investments.
- Discover and discuss how to tailor the audit plan to assessed risks of material misstatement.
- Identify and describe the fundamental principles of accounting for common derivatives.
- Explore and explain fair value presentation and disclosure requirements.
Last updated/reviewed: June 27, 2024
(0) Reviews
(14 rating)Lesson Questions and Answers0 Questions
There are no questions.
Answers to Frequently Asked Questions (FAQs)
Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Learning Objectives for Auditing Investments 1:14
- Introduction 16:46
- Equity Securities 7:22
- Overview Debt Securities 8:42
- Auditing Interest, Dividends, Gains and Losses 12:02
- Auditing Equity Method or Consolidated Investments in Other Entities 11:36
- Cash Value of Life Insurance Investment 5:40
- Property Held for Investment 2:46
- Common Derivatives 19:42
- Disclosures 15:40
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: Auditing Investments - Understanding Risks and Procedures for the Most Common Investments PDF
- Auditing Investments - Understanding Risks and Procedures for the Most Common Investments Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
Ask the instructor a question about this lesson