Overview
Financial statement auditors need to be able to analyze financial results to not only enhance audit quality, but to also improve client service through being a better business advisor. Reading and interpreting financial information is a critical skill that this module will enhance.
Major Topics:
- Financial statement analysis, and communicating insights to financial statement users
- Improving audit quality through strong analytic procedures, including identifying and responding to risk of material misstatement
- Developing expectations
- Detecting earnings management and other risks through analytic procedures
- Documenting results and conclusions
Learning Objectives
- Explain common ratios used to analyze and interpret financial results
- Describe how to improve the use of analytic procedures to detect earnings management and other anomalies
- Explain how to leverage analytic procedures as audit evidence
- Discuss how to draw conclusions based on the results of analytic procedures
Designed for:
Accountants responsible for using analytic procedures to provide greater insight into the financial results for both audit and client service purposes
Prerequisite:
Experience on basic audit engagements
Advanced Preparation:
None