Instructor for this course

Many small- and mid-size entities hold less complex investments, including mutual funds, ‘plain vanilla’ derivatives (such as interest rate swaps), and permanent life insurance policies. This module will provide an overview for evaluating the proper recognition, measurement, and disclosure of the most common investment types.

Major Topics:

  • Overview of the most common investment types
  • Typical audit risks and related audit procedures for common investments
  • The basics of accounting for equity investments in other entities
  • Understanding common ‘plain vanilla’ derivatives, like interest rate swaps
  • Fair value disclosure, including applying the fair value hierarchy


Learning Objectives

  • Explore and explain typical audit risks associated with auditing the most common investments.
  • Discover and discuss how to tailor the audit plan to assessed risks of material misstatement.
  • Identify and describe the fundamental principles of accounting for common derivatives.
  • Explore and explain fair value presentation and disclosure requirements.
Last updated/reviewed: May 18, 2022

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  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

1 Review (5 ratings)Reviews

Member's Profile
This was a great course, I would recommend it to all. The instructor even attempted to include some humor ;)


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for accounting for or auditing less-complex investments, including ‘plain vanilla’ derivatives.

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
  0:50Learning Objectives for Auditing Investments
  11:56Equity Securities
  5:39Overview Debt Securities
  14:18Auditing Interest, Dividends, Gains and Losses
  14:49Auditing Equity Method or Consolidated Investments in Other Entities
  5:50Cash Value of Life Insurance Investment
  2:19Property Held for Investment
  16:30Common Derivatives
  1:44:18Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  PDFSlides: Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  PDFAuditing Investments - Understanding Risks and Procedures for the Most Common Investments Glossary/ Index