Financial statement auditors need to be able to analyze financial results to not only enhance audit quality but also improve client service through being a better business advisor. Reading and interpreting financial information is a critical skill that this module will enhance.

Major Topics:

  • Financial statement analysis, and communicating insights to financial statement users
  • Improving audit quality through strong analytic procedures, including identifying and responding to risk of material misstatement
  • Developing plausible expectations for comparison to actual financial results
  • Detecting earnings management and other risks through analytic procedures

 

Learning Objectives
  • Explain common ratios used to analyze and interpret financial results, focusing on areas such as profitability, liquidity, operating efficiency, and leverage.
  • Describe how to improve the use of analytic procedures to detect earnings management and other anomalies.
  • Explain how to leverage analytic procedures as audit evidence.
  • Discuss how to draw conclusions from financial statement analysis.
Last updated/reviewed: August 25, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 4 - Supervisor/Manager

  1. Audit Quality Control - Avoiding Peer Review Deficiencies
  2. Internal Control Deficiencies and Other Matters - Adding Value Through Required Auditor Communications
  3. Auditing Impairment of Long-Lived Assets, Including Goodwill - Identifying and Calculating Impairment Losses
  4. Maximizing Analytic Procedure Evidence - Adding Value Through Useful Financial Statement Analysis
  5. Accounting Estimates, Including Fair Value - Evaluating the Propriety of Areas with Uncertainty
  6. Special Audit Considerations - Comprehending Requirements of Group Audits, Compliance Audits, Using the Work of a Specialist or Others, and More!
  7. The Art of Discipline and Getting Things Done - Applying Better Time, Team, and Project Management Techniques
  8. Management Skills - Exhibiting Traits of a Balanced Leader-Manager
  9. Personality Styles - Adapting to Different Types of Personalities for Improved Relationships and Interactions
  10. Making Rain - Improving Success with Retaining Clients and Attracting Prospects
  11. General Ethics for Business Professionals
  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
5 Reviews (30 ratings)

Reviews

4
Anonymous Author
These are areas of review that I have not used in awhile or ever. It was a nice refresher course in analysis.

5
Member's Profile
Golly, what a course. Always learning in these Jennifer Louis courses...can't recommend enough!

5
Anonymous Author
Good explanations of various ratios and financial statement analysis examples.

4
Anonymous Author
Good overview of various ratios that help in the financial statement analysis

5
Anonymous Author
I enjoyed this course, and I found it very informative.

Prerequisites
Course Complexity: Advanced

Prerequisite: Experience on basic audit engagements.
Designed For: Accountants responsible for using analytic procedures to provide greater insight into the financial results for both audit and client service.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: 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 .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Learning Objectives for Maximizing Analytic Procedure Evidence0:49
  Introduction12:39
  Profitability Ratio11:40
  Liquidity Ratio7:57
  A/R Activity-Operating Effectiveness Ratios6:23
  Inventory Activity-Operating Effectiveness Ratios8:50
  Other Operating Effectiveness Ratios4:25
  Leverage Ratios8:01
FINANCIAL STATEMENT ANALYSIS
  Financial Statement Analysis Case Study9:06
  Market Strength Ratios6:46
  Analytic Procedures in Audits14:09
  Focus on Strengthening Substantive Analytics10:12
CONTINUOUS PLAY
  Maximizing Analytic Procedure Evidence 1:40:57
SUPPORTING MATERIAL
  Slides: Maximizing Analytic Procedure Evidence - Adding Value Through Useful Financial Statement AnalysisPDF
  Maximizing Analytic Procedure Evidence - Adding Value Through Useful Financial Statement Analysis Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam