This course explores common red flags found in financial reportingand revenue recognitionthat 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.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify red flags in financial statements that suggest potential misstatements or fraud
Recognize common issues in revenue recognition practices that could indicate improper reporting
Distinguish between normal financial reporting practices and warning signs of manipulation
Major Topics
- Identifying Audit Risks
- Financial Reporting and Revenue Recognition
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
