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)


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

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

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

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

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

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
  Learning Objectives for Maximizing Analytic Procedure Evidence0:49
  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 Case Study9:06
  Market Strength Ratios6:46
  Analytic Procedures in Audits14:09
  Focus on Strengthening Substantive Analytics10:12
  Maximizing Analytic Procedure Evidence 1:40:57
  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