Managing Legal Risks: The Intersection of Legal and Financial Reporting (Course Id 2504)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals seeking to understand the legal aspects of financial reporting.

• What is this course about or what problem does this course solve?
  The course addresses how legal risks such as contingent liabilities and legal claims should be identified, assessed, and disclosed in financial statements, helping professionals navigate the intersection of legal and financial reporting.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to improve collaboration between legal and accounting teams, accurately recognize and report legal risks, and ensure compliant and transparent financial disclosures.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It is important because it enhances the professional's ability to properly evaluate and disclose legal risks, ensuring financial statements meet legal and regulatory standards.

• When is this course relevant or timely?
  This course is especially timely as of its 2025 release and remains relevant whenever CPAs face legal uncertainties that impact financial reporting.

• How is a course like this consumed or used?
  The course is consumed as a QAS Self Study text-based module, requiring no prerequisites or additional materials, and includes review questions and a final exam to earn 1.0 CPE credit.

This course explores the intersection between legal and financial reporting and focuses on how attorneys and accountants collaborate to evaluate, recognize, and disclose legal risks in financial statements. The course addresses key issues such as probable losses, contingent liabilities, asserted and unasserted claims, and how each discipline contributes to accurate and compliant financial reporting. 

NASBA QAS - Text - NASBA Registry - 2504

Course Learning Objectives

• Recognize roles of legal counsel and accountants in identifying, assessing, and reporting legal risks
• Identify key concepts surrounding contingent liabilities and loss contingencies
• Differentiate between asserted and unasserted claims and their impact on financial reporting
• Identify communication and collaboration best practices between legal and accounting teams

Chapter 1 - Managing Legal Risks: The Intersection of Legal and Financial Reporting

Course Learning Objectives

Course Overview

Introduction

Types of Legal Risks

Why Legal Risks Matter for Financial Reporting

Key Concepts in Legal Risk Reporting

Collaboration Between Legal Counsel and Accountants

Legal Counsel vs. Accountants

Review Questions

Collaboration Best Practices

Handling Conflicting Opinions

Consideration of Outside Counsel

Conclusion

Review Questions

Glossary of Key Terms