All publicly-traded and many privately-held, nonprofit and other types of entities are subject to independent audits as a means of providing financial report users with reasonable assurance that the financial statements and related disclosures are not materially misstated due to fraud or error. This course assists financial statement preparers with understanding how to pre-identify and proactively avoid potential audit issues, by thinking like an auditor when preparing and fairly presenting financial statement information.
What you learn in this course should result in multiple benefits, such as:
- On-time financial statement issuance
- Lower audit fees
- Improved reliability of financial reports
- An enhanced ability to manage enterprise-wide risk.
Prerequisites
No advanced preparation or prerequisites are required for this course.
Learning Objective
- Discover the concept of materiality that is built into the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), Public Company Accounting Oversight Board (PCAOB), and Generally Accepted Audit Standards (GAAS).
- Discover tips for identifying and evaluating where the most probable risk of material misstatement exists in the financial statements and related disclosures.
- Explore how to proactively avoid potential financial statement audit issues.
Last updated/reviewed: March 4, 2024
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION and OVERVIEW
Preparing Financial Statements
- Statements of Financial Accounting Concepts 5:42
- Concepts of Materiality 5:04
- Evaluating What is Material 5:35
- Notes to Financial Statements (Topic 235) 7:21
- Concept of Financial Statement Audit Risk 15:02
- Evaluating Known and Likely Misstatements 7:29
- Measuring Uncertainty and Subjectivity 7:14
- Current Audit Issues 11:37
CONCLUSION
Continuous Play
- Preparing Financial Statements 1:11:14
SUPPORTING MATERIALS
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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