Thinking Like an Auditor When Preparing Your Financial Statements

Overview

External auditors understand concepts like materiality, reasonableness, and risk of material misstatement.  This course will explain how to think like an auditor when preparing and fairly presenting your financial statements and related disclosures.

Prerequisites

None

Objectives

• Describe important judgments made by the auditor in providing reasonable assurance about whether financial statements are materially misstated due to fraud or error
• Explain how to apply subjectivity, materiality and other critical aspects of professional judgment when preparing financial statements and related disclosures
• Apply illustrative examples to explain how judgment can be appropriately applied in reliable financial reporting

Highlights

• Determining an appropriate sense of quantitative and qualitative materiality
• Identifying the critical components of the financial statements that matter most to financial statement users
• Evaluating where the financial statements are most likely to contain material fraud and error, and ensuring adequate internal control and monitoring to mitigate those risks