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Forensic Financial Statement Analysis Using AI

Name: Forensic Financial Statement Analysis Using AI
Rating: 4.6 (133 reviews)

Master forensic accounting techniques, leverage AI tools, and uncover financial fraud with ease by finance experts

Created byChris Haroun | 1.7 Million Students | #1 Best Selling Business & Finance Prof., Gary Rushin

Last updated 9/2025

English

What you'll learn

How to leverage cutting-edge AI (like ChatGPT) to analyze financial data faster and smarter.
How to detect red flags and signs of financial fraud hidden in financial statements.
Insider forensic accounting techniques to catch revenue recognition tricks, hidden debt, and other accounting shenanigans.
How to use our interactive Excel forensic analysis dashboard to investigate any company’s financials and generate reports.
How to interpret Audit Reports and Management’s Discussion & Analysis (MD&A) for warning signs.
How to identify suspicious patterns in revenues, expenses, inventories, and cash flows.
How to become a financial detective with a step-by-step framework used by Wall Street pros.
Confidence to analyze any company’s statements and uncover the truth — even if you have no accounting background.

Course content

10 sections • 109 lectures • 9h 46m total length

Lesson 1.1: Introduction and Welcome to the Course!5:10
[B/I/G/A] Lesson 1.2: How to Take the Course11:13
[B/A] Lesson 1.3.1: Introduction to the Income Statement23:44
[B/A] Exercise 1.3.2: Tesla’s Income Statement Exercise4:56
[B/A] Answers 1.3.3: Answers to Tesla’s Income Statement Exercise1:44
[B/A] Quiz 1.3.4: Income Statement Quiz0:46
Complete the first income statement quiz by answering five questions and viewing instant feedback. Mark completion in cell B9 to show 6% progress, then study the balance sheet next.
[B/A] Lesson 1.4.1: Introduction to the Balance Sheet16:11
Explain the balance sheet with a Death Star example, showing assets equal liabilities plus equity and how equity equals assets minus liabilities.
[B/A] Exercise 1.4.2: Disney’s Balance Sheet Exercise0:44
[B/A] Answers 1.4.3: Answers to Disney’s Balance Sheet Exercise1:01
[B/A] Quiz 1.4.4: Balance Sheet Quiz0:38
[B/I/A] Lesson 1.4.5: Introduction to the Cash Flow Statement26:27
Explore the cash flow statement from scratch with a Disney example, covering operating, investing, and financing activities and the role of net income, depreciation, and changes in current assets.
[B/I/A] Quiz 1.4.6: Cash Flow Statement Quiz0:54

[B/I/G/A] Lesson 2.1: Introduction to Section 2 (What, Why and How)5:06
[B/I/G/A] Lesson 2.2: Audit Report: Opinion, Basis, and Critical Audit Matters25:12
[B/I/G/A] Exercise 2.3: Comparing Audit Reports for NVIDIA Exercise1:00
Compare Nvidia's 2023 and 2024 10-K audit reports by answering questions 1–3, and explore access options on Nvidia's site or saic.gov.
[B/I/G/A] Answers 2.4: Answers to Comparing Audit Reports for NVIDIA Exercise3:19
Identify the auditor and compare the 2024 and 2023 NVIDIA 10-Ks, confirming PwC, and calculate a 0.141 million increase in consolidated inventory from 2023 to 2024.
[B/I/G/A] Lesson 2.5: What if the Auditor Refuses to “Bless” the Financials?3:48
[B/I/G/A] Exercise 2.6: SMCI’s Audit Issues Exercise0:42
[B/I/G/A] Answers 2.7: Answers to SMCI’s Audit Issues Exercise2:17
[B/I/G/A] Exercise 2.8: Your Analysis on Any Company for The Audit Report27:59
Practice AI-assisted audit report analysis by evaluating Apple's latest and prior 10-Ks, scoring questions, assessing independence and critical matters, and producing executive summaries and detailed reports.
[B/I/G/A] Lesson 2.9: Management’s Discussion & Analysis (MD&A) Explained15:47
[B/I/G/A] Exercise 2.10: MD&A for Berkshire Hathaway Exercise1:24
[B/I/G/A] Answers 2.11: Answers to MD&A for Berkshire Hathaway Exercise1:54
[B/I/G/A] Exercise 2.12: Your Analysis on Any Company for The MD&A18:54
Analyze Apple’s mDNA using the 10-K, identifying main drivers like iPhone and services, and assess margins, currency effects, liquidity, and debt.
[B/I/G/A] Quiz 2.13: The Audit Report and the MD&A Quiz0:40

[B/I/A] Lesson 3.1.1: Introduction to Section 3.1 (What, Why and How)1:38
[B/I/G/A] Lesson 3.1.2: Revenue Recognition Part 1: Days Sales Outstanding6:31
Learn revenue recognition timing, assess fraud risks with days sales outstanding, trend and ratio analysis, deferred revenue, and quality of earnings ratio for forensic financial statement analysis using ai.
[B/I/G/A] Exercise 3.1.3: Your Analysis on Any Company for DSO Exercise3:21
Analyze a company's accounts receivable and days sales outstanding from Apple’s latest 10-K income statements, compute DSO, assess the trend, and assign a sector-based rating in this hands-on exercise.
[B/I/G/A] Lesson 3.1.4: Rev. Recognition Part 2: % Completion, Def. Rev+Bookings5:41
[B/I/G/A] Exercise 3.1.5: Your Analysis on Any Company for Def. Rev+Bookings8:14
[B/I/G/A] Lesson 3.1.6: Has Revenue & Expense Recognition Changed1:54
[B/I/G/A] Exercise 3.1.7: Your Analysis on Any Company for Rev & Ex Rec. Changes3:55
analyze Apple’s revenue recognition in the latest annual report by downloading or pasting the report into Word and uploading it to ai to detect changes in rev and expense recognition.
[B/I/G/A] Lesson 3.1.8: Did the Company Reduce Revenue Disclosure1:21
[B/I/G/A] Exercise 3.1.9: Your Analysis on Any Company Did they Cut Rev Disclsr2:21
[B/I/G/A] Lesson 3.1.10: Did the Company Change Expenses Disclosure4:46
[B/I/G/A] Exercise 3.1.11: Your Analysis on Any Company Did they Cut Exp Disclsr1:53
[B/I/G/A] Lesson 3.1.12: Is Organic Growth Falling and Masked by Acquisitions?6:07
[B/I/G/A] Exercise 3.1.13: Is Organic Growth Falling and Masked by Acquisitions?1:57
Explore whether organic revenue deterioration is masked by acquisitions, analyzing an exercise showing 2% year over year growth driven by services while iPhone sales remain flat.
[B/I/G/A] Lesson 3.1.14: What % of Revenue Comes from New ProductsMarkets?2:50
venture-backed firms grow quickly and ipo to fund growth, but revenue decelerates as they mature; monitor new product launches and growth, and include 8-k and 10-k disclosures in financial models.
[B/I/G/A] Exercise 3.1.15: What % of Revenue Comes from New ProductsMarkets?2:02
[B/I/G/A] Lesson 3.1.16: Explain Major Changes in Sales Returns and Allowances4:28
[B/I/G/A] Exercise 3.1.17: Explain Major Changes in Sales Returns and Allowances0:59
[B/I/G/A] Lesson 3.1.18: Rev & Expense Trend Analysis & Changes in Rev Rec.1:56
Analyze year-over-year and quarter-over-quarter changes in revenue and expenses. Evaluate expense trends as a share of revenue, compare to industry peers, and assess revenue recognition changes and phantom revenue.
[B/I/G/A] Exercise 3.1.19: Rev & Expense Trend Analysis & Changes in Rev Rec2:03
[B/I/G/A] Lesson 3.1.20: Did the Company Recently Restate Earnings?2:17
[B/I/G/A] Exercise 3.1.21: Did the Company Recently Restate Earnings?1:14
[B/I/G/A] Lesson 3.1.22: Non-Recurring Items and the Profitability Impact3:52
[B/I/G/A] Exercise 3.1.23: Non-Recurring Items and the Profitability Impact0:58
[B/I/G/A] Lesson 3.1.24: Changes to Depreciation Accounting2:16
[B/I/G/A] Exercise 3.1.25: Changes to Depreciation Accounting0:59
Apply forensic financial statement analysis to assess changes to depreciation accounting by evaluating whether depreciation policies changed, recognizing the use of straight-line depreciation, and spotting red flags in the exercise.
[B/I/G/A] Lesson 3.1.26 GAAP vs Non-GAAP Accounting11:15
Explore GAAP versus non-GAAP measures, potential misrepresentation, SEC oversight, and FASB's proposals to standardize KPIs like EBITDA and free cash flow.
[B/I/G/A] Exercise 3.1.27: GAAP vs Non-GAAP Accounting2:05
Compare GAAP and non-GAAP accounting, and analyze earnings quality ratios and accruals ratios to see how one-time and non-cash items affect cash flow and net income.
[B/I/G/A] Lesson 3.1.28: Segment Reporting and its Impact on Performance6:51
[B/I/G/A] Exercise 3.1.29: Segment Reporting and its Impact on Performance1:25
[B/I/G/A] Exercise 3.1.30: Geographic Reporting and its Impact on Performance2:10
Analyze geographic reporting to assess performance effects across geographies, tracking year-over-year revenue changes and recognizing one-off spikes, with attention to foreign exchange hedging in footnotes.
[B/I/G/A] Exercise 3.1.31: Vertical Reporting and its Impact on Performance3:12
[B/I/G/A] Quiz 3.1.32: Income Statement Analysis0:44

[B/I/G/A] Lesson 3.2.1: Introduction to Section 3.2 (What, Why and How)10:44
[B/I/G/A] Lesson 3.2.2: Overvaluing Assets Due to an Acquisition7:59
[B/I/G/A] Exercise 3.2.3: Overvaluing Assets Due to an Acquisition2:26
[B/I/G/A] Lesson 3.2.4: Is Inventory Growing Faster than Revenue?5:08
[B/I/G/A] Exercise 3.2.5: Is Inventory Growing Faster than Revenue?5:47
[B/I/G/A] Lesson 3.2.6: LIFO vs FIFO & Changes to Inventory Valn Write-downs8:43
Compare lifo, fifo, and average cost inventory methods, noting IFRS restrictions on lifo, inflation effects, and how write-downs, reserves, and cookie jar accounting shape reported profits.
[B/I/G/A] Exercise 3.2.7: LIFO vs FIFO & Changes to Inv. Valn Write-downs1:35
[B/I/G/A] Lesson 3.2.8: Is Accounts Receivable Growing Much Faster than Revenue?9:36
Analyze accounts receivable growing faster than revenue to assess cash flow risk, using accounts receivable turnover ratio and DSO, with Under Armour and FTX examples.
[B/I/G/A] Exercise 3.2.9: Is AR Growing Much Faster than Revenue?1:40
[B/I/G/A] Lesson 3.2.10: Is Inventory Growing Faster than COGS?5:27
Analyze whether inventory grows faster than revenue and COGS, assess turnover, watch for write downs or changes in accounting methods, and learn from Krispy Kreme's restatement.
[B/I/G/A] Exercise 3.2.11: Is Inventory Growing Faster than COGS?2:13
[B/I/G/A] Lesson 3.2.12: Mark-to-Market (MTM) Income on the Balance Sheet18:43
[B/I/G/A] Exercise 3.2.13: Mark-to-Market (MTM) Income on the Balance Sheet1:47
Examine mark-to-market income on the balance sheet, assess material MTM changes in assets and liabilities, and compare MTM gains against derivative losses with a note to review the annual report.
[B/I/G/A] Lesson 3.2.14: How are Operating Leases & Capital Leases Accounted?8:14
[B/I/G/A] Exercise 3.2.15: How are Operating Leases & Capital Leases Accounted?2:52
[B/I/G/A] Lesson 3.2.16: Did the Company Change Omit Balance Sheet Disclosure?7:01
[B/I/G/A] Exercise 3.2.17: Did the Company Change Omit Balance Sheet Disclosure?1:32
Assess whether the company changed or omitted balance sheet disclosure, focusing on off balance sheet commitments like manufacturing and other unconditional purchase obligations and their cash flow impact.
[B/I/G/A] Lesson 3.2.18: Explanation of Changes in Equity on the Balance Sheet16:46
Perform forensic analysis of the equity section by tracking treasury stock, apic, common and preferred shares, retained earnings, and aoci to detect misstatements.
[B/I/G/A] Exercise 3.2.19: Explanation of Changes in Equity on the Balance Sheet2:45
Analyze changes in equity on the balance sheet by examining treasury stock purchases, retained earnings deficit swing, and accumulated other comprehensive income, with emphasis on Apple's 2024 buybacks and risks.
[B/I/G/A] Lesson 3.2.20: CFFO & How Consistent is the CFFO with Net Income?9:24
[B/I/G/A] Exercise 3.2.21: CFFO & How Consistent is the CFFO with Net Income?2:26
[B/I/G/A] Lesson 3.2.22: CFFI and CFFF9:37
Explore cash flow from operations, investing, and financing, including capex, free cash flow calculations, ebitda as a proxy, and red flags from investing cash flow, with Caterpillar and Oracle examples.
[B/I/G/A] Exercise 3.2.23: CFFI and CFFF4:29
[B/I/G/A] Quiz 3.2.24: The Balance Sheet & CF Statement Analysis0:40
Engage with the balance sheet and cash flow statement through Exercise 3.2.24, complete the quiz, and check cell B9 to reach 75% completion before exploring footnotes in section 4.1.

[B/I/G/A] Lesson 4.1.1: Introduction to Section 4.1 (What, Why and How)3:15
[B/I/G/A] Lesson 4.1.2: Footnote Category 1/10 Significant Accounting Policies5:00
[B/I/G/A] Exercise 4.1.3: Footnote Category 1/10 Significant Accounting Policies2:23
[B/I/G/A] Lesson 4.1.4: Footnote Category 2/10 Debt and Leases7:12
[B/I/G/A] Exercise 4.1.5: Footnote Category 2/10 Debt and Leases2:26
Analyze footnote category 2/10 debt and leases using AI to determine five-year debt maturities and assess Apple's ability to repay, supported by Apple fiscal year 24 data.
[B/I/G/A] Lesson 4.1.6: Footnote Category 3/10 Income Tax Disclosure5:14
[B/I/G/A] Exercise 4.1.7: Footnote Category 3/10 Income Tax Disclosure2:07
[B/I/G/A] Lesson 4.1.8: Footnote Category 4/10 Employee Benefits5:46
[B/I/G/A] Exercise 4.1.9: Footnote Category 4/10 Employee Benefits1:16
Examine footnote category four on employee benefits, noting Apple uses defined contribution retirement plans and share-based awards with no significant pension liabilities or underfunded post-retirement benefits.
[B/I/G/A] Lesson 4.1.10: Footnote Category 5/10 Goodwill & Intangible Assets6:30
Explore how goodwill arises from acquisitions and undergoes impairment testing, and how intangible assets such as trademarks, brand names, patents, and contract-based rights are recognized and amortized or impaired.
[B/I/G/A] Exercise 4.1.11: Footnote Category 5/10 Goodwill & Intangible Assets1:34
Explore footnote category five on goodwill and intangible assets, noting no goodwill on the balance sheet and acquisition-related intangibles, straight-line amortization, and impairment status in 2024.
[B/I/G/A] Lesson 4.1.12: Footnote Category 6/10 Fair Value Measurements2:46
Learn fair value measurements across level one to level three, from active markets to hard-to-value assets, and how sensitivity analysis informs valuations as noted in footnotes.
[B/I/G/A] Exercise 4.1.13: Footnote Category 6/10 Fair Value Measurements1:29
[B/I/G/A] Lesson 4.1.14: Footnote Category 7/10 Segment Reporting7:00
Explore segment reporting in footnotes to analyze revenue, expenses, and margins by product and geography, with year-over-year trend analysis and competitive benchmarking.
[B/I/G/A] Exercise 4.1.15: Footnote Category 7/10 Segment Reporting1:35
[B/I/G/A] Lesson 4.1.16: Footnote Category 8/10 Contingencies Legal Issues5:30
Discover how footnote contingencies and legal proceedings reveal major lawsuits, including shareholder derivative cases and cloud litigation, and how audits assess reserves and risk without major financial impact.
[B/I/G/A] Exercise 4.1.17: Footnote Category 8/10 Contingencies Legal Issues1:19
[B/I/G/A] Lesson 4.1.18: Footnote Category 9/10 Derivatives Hedging Activities12:28
Explain how fair value hedges, cash flow hedges, and net investment hedges use derivatives like swaps, options, and futures to protect balance sheets and cash flows.
[B/I/G/A] Exercise 4.1.19: Footnote Category 9/10 Derivatives Hedging Activities2:09
[B/I/G/A] Lesson 4.1.20: Footnote Category 10/10 Acquisitions7:01
[B/I/G/A] Exercise 4.1.21: Footnote Category 10/10 Acquisitions2:38
[B/I/G/A] [OPTIONAL] Wall Street Pro Reacts to the Movie Wall Street38:13
[B/I/G/A] Quiz 4.1.22: Footnote Analysis0:35

Requirements

No prior finance or accounting experience needed – we teach you everything from the ground up.
A computer with Microsoft Excel (to use the interactive forensic analysis dashboard provided in the course).
A willingness to learn by doing and think like a financial detective.

Description

Do you want to learn how to uncover financial issues – and how AI can supercharge that process? Welcome to Forensic Financial Statement Analysis Using AI, the most comprehensive, hands-on, and innovative forensic finance course available — created by an award-winning finance professor and a veteran Wall Street investment banker (CPA).

Whether you’re a total newbie or a finance pro, this course takes you on a real-world journey to reveal the truth hidden in financial statements. We’ll start with the basics of financial statements for beginners and then dive into advanced forensic techniques used by Wall Street professionals.

In this course, you'll get:

· An interactive Excel Forensic Analysis Dashboard that lets you analyze any company’s financials step-by-step and automatically produce a custom report of your findings.

· Cutting-edge AI tools (like ChatGPT) integrated into the process, so you can learn how to work smarter and catch anomalies faster.

· Real-world exercises and case studies, including analyzing companies like Tesla, Disney, and a company of your choice, making the learning practical and engaging.

· Multiple learning tracks (Beginner, Intermediate, Genius, or All) so you can tailor the course to your experience level and focus on what matters to you.

· A complete forensic analysis framework covering income statements, balance sheets, cash flows, audit reports, MD&A, and footnotes — so you won’t miss a single clue.

· A handy glossary and cheat sheets to help you grasp key accounting and finance terms instantly.

You'll learn by doing. We’ve designed this course like a financial detective game – with us as your mentors and AI as your assistant. By the end, you’ll know how to spot suspicious accounting practices, analyze financial reports with confidence, and use AI to gain an edge in your analysis.

Whether you're a finance student, an experienced analyst, or simply someone who wants to peek behind the corporate curtain, this course will equip you with the knowledge, techniques, and confidence to investigate any company's financial health and detect problems before it’s too late.

Join over 2 million students worldwide who have benefited from our courses and career advice.

Enroll now and take the first step toward becoming an AI-powered financial detective!

Who this course is for:

Finance and accounting professionals who want to sharpen their forensic analysis skills and incorporate AI into their toolkit.
Auditors, analysts, and CPAs looking to detect financial fraud or irregularities more effectively.
Students, career changers, or aspiring forensic accountants eager for a hands-on approach to financial statement analysis.
Investors, entrepreneurs, and curious individuals who want to critically analyze company financials to make better decisions.

Forensic Financial Statement Analysis Using AI

What you'll learn

Explore related topics

Course content

SECTION 1: Course Overview, Settings and Introduction to Financial Statements12 lectures • 1hr 33min

[B/I/G/A] SECTION 2: Audit Report and Management Discussion & Analysis (MD&A)13 lectures • 1hr 48min

[B/I/G/A] SECTION 3.1: Income Statement Analysis32 lectures • 1hr 43min

[B/I/G/A] SECTION 3.2: Balance Sheet & Cash Flow Analysis24 lectures • 2hr 28min

[B/I/G/A] SECTION 4.1: Footnotes Analysis23 lectures • 2hr 5min

[B/I/G/A] SECTION 4.2: Printing Your Executive Summary1 lecture • 3min

[B/I/G/A] SECTION 4.3: Printing Your Detailed Report1 lecture • 2min

[B/I/A] SECTION 5: Definitions & Links to Many Finance and Accounting Videos1 lecture • 1min

[B/I/G/A] SECTION 6: Next Steps1 lecture • 2min

Bonus Section1 lecture • 1min

Requirements

Description

Who this course is for: