Audit - Financial Statement
What you'll learn
- What an audit engagement is and the objectives of the audit engagement
- How learning the audit process can enhance an accountants understanding of financial accounting concepts
- The general format and structure of a public accounting firm
- The general format and structure of an audit team
- How to plan an audit
- How to assess risk and use risk assessment in the planning process
- The concept of materiality and how it applies to audit planning and procedures
- Internal controls, tests of internal controls, and the role they play in the audit process
- Audit sampling procedures
- Substantive testing procedures
- Audit testing procedures related to the revenue process
- Audit testing procedures related to the purchasing process
- Audit testing procedures related to payroll and human recourses
- Audit testing procedures related to inventory
- Audit testing procedures related to prepaid expenses, intangible assets, & PP&E
- Audit testing procedures related to long term debt equity and cash
- The format of audit reports
- The concepts of professional conduct and independents
- Learners should have a basic understanding of accounting concepts and the double entry accounting system.
NASBA CPE accredited course
National Association of State Boards of Accountancy (NASBA)
NASBA CPE credits: 23.8
Recommended NASBA field of study: Accounting
Program level: Basic
To earn NASBA CPE credits:
- Complete all videos
- Score 70% or higher on final exam
Glossary: Find PDF attached to the first lecture of this course.
Completion to obtain CPE should be accomplished a year after purchase date.
If you undertake this course for NASBA CPE credits, please complete the Self Study Course Evaluation.
Audit-Financial Accounting will discuss, in detail, the auditing process of financial statements.
The course will start by discussing what an audit is, as well as what the terms attest engagement and assurances services mean.
We will discuss the audit environment, the general format of a public accounting firm, and the general format of an audit team that would conduct the procedures related to an audit. The course will also discuss regulations and regulatory institutions related to the audit process.
The course will cover the planning process for an audit engagement. The planning process is a very important component of the audit because it will outline the steps that will be taking. The highest levels of the public accounting firm are generally involved in the planning process.
We will consider how to assess risk related to the audit using an audit risk Model. The risk assessment will help us plan the audit and determine where the auditors time can be spent most efficiently to gather evidence to support the auditor’s conclusion and opinion.
Learners will learn the different formats of audit evidence and how to document audit evidence so that it can be used as evidence to support the conclusion and opinion of the auditor.
We will exam the internal controls of the organization. Internal controls are policies set up by management to achieve the objectives of the organization. As auditors, we are primarily concerned with internal controls that will lower the risk of financial statements being materially misstated. If we can rely on internal controls as an auditor, we may be able to do more testing of the controls and less substantive testing, and this can be more efficient.
The course will discuss the audit sampling methods. When applying testing procedures, auditors often need to test a sample of a population and then apply the results to the population as a whole. Different sampling methods are appropriate for different situations and assertions being tested.
Next, we will talk about substantive tests. Substantive tests include tests that most people think of when they think of an audit, like pulling files, counting inventory, and performing procedures at the company’s place of business. Substantive testing will include testing account balances and transactions.
We will then cover audit procedures related to specific processes, including the revenue process, the purchasing process, and the payroll and human resources process.
Next will cover the audit process for specific accounts like inventory, prepaid expenses, intangible assets, property plant and equipment, long term debt & equity.
Then we will discuss the audit process related to cash, cash being a very important account because it is involved in almost every other accounting process at some point.
Learners will then learn how to put together a standard audit report. The standard audit report is called an unqualifies report. It is beneficial to actually memorize or have a good idea of the format of the standard unqualifies report. We can then think about variations on the standard unqualified report, adjusting it as necessary.
CPE (Continuing Professional Education)
1. Describe what an audit engagement is and the objectives of the audit engagement
2. Explain how learning the audit process can enhance an accountant’s understanding of financial accounting concepts
3. Discuss the general format and structure of a public accounting firm
4. Outline the general format and structure of an audit team
5. Describe how to plan an audit
6. Explain how to assess risk and use risk assessment in the planning process
7. Discuss the concept of materiality and how it applies to audit planning and procedures
8. Outline internal controls, tests of internal controls, and the role they play in the audit process
9. List audit sampling procedures
10. List substantive testing procedures
11. Discuss audit testing procedures related to the revenue process
12. Explain audit testing procedures related to the purchasing process
13. Identify audit testing procedures related to payroll and human resources
14. Describe audit testing procedures related to inventory
15. Explain audit testing procedures related to prepaid expenses, intangible assets, & PP&E
16. Outline audit testing procedures related to long term debt equity and cash
17. Discuss the format of audit reports
18. Explain the concepts of professional conduct and independents
For more information regarding administrative policies, please contact our support using the Help and Support link at the bottom of this page.
Who this course is for:
- Professionals working in public accounting
- Accounting students
- Accounting professionals who want to expand their understanding of accounting
- Accounting professionals who work with auditors
Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.
Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).
Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.
In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.
Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.
Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.
Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.
Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.
The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.
Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.