This course covers the key red flags auditors should watch for during audits. It explores risks in financial reporting, revenue recognition, internal controls, and compliance. The course helps auditors identify warning signs of potential fraud, misstatements, and issues like weak internal controls or suspicious audit evidence. It also addresses red flags in management behavior, cybersecurity, and going concern evaluations.
Publication Date: March 2025
Topics Covered
- Red Flags in Financial and Revenue Reporting
- Behavioral and Management Red Flags
- Red Flags in Internal Controls and Audit Evidence
- Red Flags in Compliance and Going Concern
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
- Recognize how to distinguish between normal financial reporting practices and warning signs of manipulation
- Recognize behavioral red flags that may indicate fraudulent or unethical conduct
- Identify management-related risks in estimates and representations that could affect audit outcomes
- Determine when changes in management behavior require further investigation
- Identify weaknesses in internal controls that may expose the organization to risk
- Identify the appropriate response when suspicious or incomplete audit evidence is found
- Recognize how to distinguish between valid and questionable audit evidence during the audit process
- Recognize red flags in compliance audits that suggest potential violations or regulatory risks
- Identify cybersecurity risks and indicators of inadequate protection measures
- Determine when going concern issues require further assessment or disclosure
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Auditing (4 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Kelen Camehl
Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.