Cash Flow Manipulation - What You Need to Know - 2026 (Text Based)

This course provides an overview of how operating cash flow can be manipulated and the techniques companies use to make liquidity appear stronger than it is. It covers classification-based schemes, including reclassifying financing activities, factoring receivables, and using supplier finance programs. The course also examines timing-based methods, such as accelerating collections, delaying payments, and short-term window dressing. In addition, it explores transaction structuring techniques and how cash flow can be influenced through prepayments, structured settlements, and other arrangements. Finally, the course addresses disclosure and presentation strategies that can conceal cash flow issues, including aggregation, selective narrative disclosures, and the use of non-GAAP liquidity measures. 

Learning Objectives:

1. Identify common methods companies use to manipulate operating cash flow to appear more liquid than they truly are
2. Distinguish between legitimate cash flow management and classification-based schemes, including reclassifying financing activities, factoring receivables, and supplier finance programs
3. Analyze timing-based manipulation techniques such as accelerating collections, delaying payments, and short-term window dressing

Instructional Method: Self-Study

Review Date: 01/20/2026

Required Components: Written Materials

CPE Final Exam Required Passage Grade: 70%

Please Note: This course must be completed within 1 year of the date of receipt of this course for CPE Credit

Prerequisites: None

Level: Basic

NASBA Category: Auditing 

Recommended CPE: 4

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FurtherEd is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.