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Author: |
Kelen Camehl, CPA, MBA |
Course Length: |
Pages: 221 ||| Word Count: 10,3079 ||| Review Questions: 48 ||| Final Exam Questions: 80 |
CPE Credits: |
16.0 |
IRS Credits: |
0 |
Price: |
$125.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Auditing |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This comprehensive course examines how financial statements and operating cash flow can be manipulated and teaches auditors how to identify fraud indicators and respond to potential illegal acts.
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Frequently Asked Questions: |
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Description: |
This course provides a comprehensive overview of the auditor’s responsibilities in complex financial reporting environments, with a strong focus on how companies manipulate financial statements and operating cash flow through revenue and expense schemes, asset and disclosure distortions, classification and timing tactics, structured transactions, and misleading presentation, including non-GAAP measures. Building on that foundation, the course examines how auditors respond to fraud indicators and potential illegal acts, including evaluating their impact and communicating appropriately with management and the audit committee. It also covers required audit committee communications throughout the engagement, auditor responsibilities for engagement deficiencies and the subsequent discovery of facts after report issuance, and the purpose, scope, and limitations of comfort letters in securities offerings. |
Usage Rank: |
57500 |
Release: |
2026 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: A Definitive Guide to Auditing CPA Courses
Internal: Fraud CPE Courses For CPAs
External: Internal audit
External: Continuous Audits: Steps, Benefits, and Challenges Explained
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
23-Jun-2026 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Navigating Audit Challenges - Fraud, Illegal Acts, and Ongoing Auditor Responsibilities - CPE course for CPAs |
Learning Objectives: |
Chapter 1 Revenue, Expenses, and Liability Manipulation Schemes Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 2 Asset, Equity, and Disclosure-Based Fraud Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 3 Cash Flow Manipulation Through Classification and Timing Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 4 Structuring and Disclosure Techniques Used to Inflate Operating Cash Flow Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 5 Identifying and Responding to Illegal Acts Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 6 Communicating Effectively with the Audit Committee Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 7 Post-Audit Responsibilities and Engagement Follow-Up Learning ObjectivesUpon completion of this chapter, you will be able to:
Chapter 8 Understanding Comfort Letters in Practice Learning ObjectivesUpon completion of this chapter, you will be able to:
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Course Contents: |
Chapter 1 - Revenue, Expenses, and Liability Manipulation Schemes Chapter Overview Learning Objectives Introduction Non-Recurring Items Detecting Improper Use of Non-Recurring Items Overstating Deferred Revenue Common Mistakes in Deferred Revenue Intentional Mistakes in Deferred Revenue Detecting Intentional Misstatements in Deferred Revenue Backdating Transactions Detecting Backdating Fraudulent Journal Entries Detecting Fraudulent Journal Entries Misclassifying Financial Statement Items Improper Use of Reserves Misrepresenting Lease Classifications Structuring Transactions to Avoid Regulatory or Accounting Thresholds Conclusion Review Questions Chapter 2 - Asset, Equity, and Disclosure-Based Fraud Chapter Overview Learning Objectives Introduction Manipulating Depreciation or Amortization Schedules Related Party Transaction Fraud Creating Shell Companies for Fraudulent Transactions Manipulating Stock Option Accounting Failure to Consolidate Related Entities Failure to Disclose Contingent Liabilities Misreporting Foreign Currency Gains or Losses Misleading Disclosures Best Practices for Ethical Financial Reporting Conclusion Review Questions Chapter 3 – Cash Flow Manipulation Through Classification and Timing Chapter Overview Learning Objectives Introduction Reclassifying Financing Inflows as Operating Cash Flow Supplier Finance & Reverse Factoring Receivables Factoring Classification Issues Timing-Based Cash Flow Techniques Accelerating Cash Inflows Delaying Cash Outflows Window Dressing Strategies Conclusion Review Questions Chapter 4 – Structuring and Disclosure Techniques Used to Inflate Operating Cash Flow Chapter Overview Learning Objectives Introduction Contract Structuring for Cash Flow Appearance Third-Party and Related-Party Transaction Engineering Prepayments, Deposits, and Structured Settlements Red Flags Narrative Disclosure Techniques Aggregation and Line-Item Presentation Non-GAAP Liquidity Measures Conclusion Review Questions Chapter 5 – Identifying and Responding to Illegal Acts Chapter Overview Learning Objectives Introduction Illegal Acts Definition Relationship to Financial Statements Audit Considerations of the Possibility of Illegal Acts Absence of Evidence of Possible Illegal Acts Examples of Possible Illegal Acts Illegal Acts vs. Change in Accounting Principles or Estimates Illegal Acts vs. Error Corrections Responding to Possible Illegal Acts Responding to Detected Illegal Acts FCPA Considerations Conclusion Review Questions Chapter 6 – Communicating Effectively with the Audit Committee Chapter Overview Learning Objectives Introduction Guidance Communication Objectives Initial Appointment or Retention Terms of the Audit Communication of Overall Audit Strategy and Key Risks Audit Strategy Communicating Audit Results Quality of a Company's Financial Reporting Disagreements with Management Difficult or Contentious Matters Difficulties in the Audit Going Concern Corrected & Uncorrected Misstatements Control Deficiencies Documenting Communications Conclusion Review Questions Chapter 7 – Post-Audit Responsibilities and Engagement Follow-Up Chapter Overview Learning Objectives Introduction Why Post-Audit Matters Exist Overview of Applicable PCAOB Standards Assessing if an Engagement Deficiency Exists Responding to an Engagement Deficiency Inability to Support Opinion Discovery of Other Facts Quality Control Requirements Conclusion Review Questions Chapter 8 - Understanding Comfort Letters in Practice Chapter Overview Learning Objectives Introduction Overview of Comfort Letters Who Can Receive a Comfort Letter General Principles and Limitations Format and Content of Comfort Letters Independence Introductory Paragraph Reporting on Compliance with SEC Requirements Information Other Than Audited Financial Statements Interim Financial Statements Capsule Financial Information Pro Forma Financial Information Financial Forecasts Subsequent Changes Statistics, Tables, and Other Information Concluding Paragraph Subsequently Discovered Matters Illustrative Example Conclusion Review Questions Glossary of Key Terms |
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