Instructor for this course

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Each set of financial statements and auditor’s report thereon must properly address the unique circumstances of the specific reporting entity’s circumstances. This module provides guidance for properly altering financial statements and audit reports for certain complex transactions and events that are often uncovered through general audit procedures, such as subsequent testing, reviewing minutes, and more.

Major Topics:

  • Common reasons for modifying audit opinions
  • Emphasis-of-matter or other-matter explanatory paragraphs
  • General audit procedures to identify relevant transactions and events impacting financial statement presentation and disclosure
  • Drafting relevant general footnotes, such as related party transactions, subsequent events, loss contingencies, and more
  • Improving the footnote drafting process


Learning Objectives

  • Explore and explain circumstances requiring audit report modifications and explanatory paragraphs.
  • Identify and understand the importance of applying general audit procedures to identify relevant footnote disclosures.
  • Discover and discuss how to improve evaluating disclosures for completeness and understandability.
Last updated/reviewed: May 10, 2022

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 3 - In-Charge/ Senior

  1. Fraud Trends - Applying Real-life Lessons to Small and Mid-Size Entities
  2. Reviewing Workpapers - Embracing Responsibilities for Quality Control
  3. Advanced Audit Planning Concepts - Ensuring an Effective and Efficient Audit
  4. Internal Controls to Mitigate Financial Reporting Risk - Designing Stronger Internal Controls for Small or Mid-Size Entities
  5. Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations
  6. Auditing Contingencies and Going Concern Uncertainty - Testing for Completeness and Proper Disclosure
  7. Audit Reporting Advanced Concepts - Understanding the Impact of General Audit Procedures on Disclosures and Audit Report Modifications
  8. Critical Traits of a Thinking Auditor - Stretching Experienced Auditors Beyond the Basics
  9. Client and Engagement Management - Managing the Black Holes that Erode Profitability
  10. Supervisor Skills - Coaching Staff to Stay on the Right Track
  11. Professional Ethical Considerations for CPAs
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for drafting footnote disclosures and audit reports.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  1:04Learning Objectives for Audit Reporting Advanced Concepts
  15:15Overview of Audit Reporting Requirements
  7:35Exercise-What Type of Audit Report?
  11:51Explanatory Paragraphs in Audit Reports
  4:53Exercise-True/False Quiz
  8:17Commitment and Contingency Disclosures
  7:26Subsequent Events Disclosures
  13:32Subsequently Discovered Facts
  5:09Related Party Disclosures
  11:00Exercise-Drafting Footnotes
  3:47Written Management Representations
  9:50Improving the F/S Footnote Drafting Process
  1:39:55Audit Reporting Advanced Concepts
  PDFSlides: Audit Reporting Advanced Concepts
  PDFAudit Reporting Advanced Concepts Glossary/ Index