Identifying Audit Risks - Financial Reporting and Revenue Recognition - 2025 (Text Based)

This course explores common red flags found in financial reporting and revenue recognition that auditors should watch for during an audit. Key topics include identifying unusual patterns in financial statements, such as irregular revenue or expense recognition, discrepancies in accounts, and indicators of financial manipulation. The course also covers red flags in revenue recognition practices, focusing on the application of ASC 606 and the warning signs that suggest improper revenue reporting. This course emphasizes how auditors can detect financial misstatements early and respond effectively.  

Learning Objectives:

1. Identify red flags in financial statements that suggest potential misstatements or fraud
2. Recognize common issues in revenue recognition practices that could indicate improper reporting
3. Distinguish between normal financial reporting practices and warning signs of manipulation

Instructional Method: Self-Study

Review Date: 09/08/2025

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:  1

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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.