Identifying Audit Risks - Financial Reporting and Revenue Recognition
Author: Kelen Camehl
| CPE Credit: |
1 hour for CPAs |
This course explores common red flags found in financial reporting and revenue recognition that auditors should watch for during an audit. Key topics include identifying unusual patterns in financial statements, such as irregular revenue or expense recognition, discrepancies in accounts, and indicators of financial manipulation. The course also covers red flags in revenue recognition practices, focusing on the application of ASC 606 and the warning signs that suggest improper revenue reporting. This course emphasizes how auditors can detect financial misstatements early and respond effectively.
Publication Date: March 2025
Topics Covered
- Financial Statement Irregularities
- Key Financial Ratios and Benchmarks
- Unusual Accounting Practices
- Financial Statement Warning Signs
- Using Analytics and Trend Analysis
- Revenue Recognition Red Flags
- Common Methods of Fraudulent Revenue Recognition
- Unusual Patterns in Customer Relationships and Sales
- Detecting Improper Revenue Recognition
Learning Objectives
- Identify red flags in financial statements that suggest potential misstatements or fraud
- Recognize common issues in revenue recognition practices that could indicate improper reporting
- Indicate how to distinguish between normal financial reporting practices and warning signs of manipulation
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Auditing (1 hour)
Program Prerequisites
None
Advance Preparation
None
