Mastering Financial Statement Control and Analysis

Introduction:

Financial statement analysis is crucial for evaluating an organization's financial position and performance. As the auditing profession evolves with the growing complexity of modern institutions, effective understanding and control of financial statements have become increasingly significant. Given the extensive human, physical, and financial resources involved, projects are prone to errors and manipulations. This Financial Statement Analysis and Control course provides participants with the essential skills and competencies needed to analyze and control financial statements effectively.

Objectives:

By the end of this Financial Statement Analysis and Control course, participants will be able to:

• Enhance their auditing and financial management skills.
• Apply modern scientific and practical methods in auditing and financial control.
• Identify and address issues in internal auditing and controls.
• Understand the phases of the accounting cycle and the necessary transactions and documentation.
• Develop a comprehensive and well-defined chart of accounts.
• Prepare accurate accounting adjustments, including deferrals and accruals.

Training Methodology:

• Case Studies
• Interactive Workshops
• Simulations
• Group Discussions
• Real-life Scenarios

Course Outline:

Unit 1: A Synoptic Study of Changing Business Risk Management and Internal Control Systems Towards Modern World: The Case of Ethiopia

• Financial Management System and Risk Assessment
• Financial Statement Analysis and Valuation for Internal Control Systems
• Concepts of Management and Performance Measurement
• Creation of the Internal Audit Department
• Internal Control According to the CoZo Commission
• Internal Controls Under the US Sarbanes-Oxley Act
• Auditing Committee Activities
• Institutionalization of Governance Principles
• Strategic Auditing
• Auditing of Risk
• Auditing of Derivatives
• Auditing of Computer-Based Information Systems

Unit 2: Evaluation of Internal Control System: Techniques for Using Sampling Methodologies

• Implementation of Sampling as per IAS 530
• Basics of Sampling
• Performing Audit Tests Using Sampling
• Components and Sizing of the Audit Sample
• Planning and Selection of Sample Items
• Avoiding Bias in Sample Selection
• Reviewing Data Collected for Internal Audit

Unit 3: Quantitative Methods of Internal Control Systems Audit Risk Management

• Auditing of Risk in Compliance with ISA 400
• Regressions as a Prediction Technique for Financial Risk
• Use of Altman’s Z-Score Model
• Application of Comport Model
• Application of KEDA Model
• Use of M. W. Sherwood Model
• Correlation Measures for Fraud Detection
• MANGO Methodology of Financial Management Assessment

Unit 4: Subject of the Audit – Financial Statements with Projections

• Assessment of Future Financial Information per ISRE 810
• Data Collection for Forecasting Financial Information
• Evaluation of Presentation and Disclosure of Prospective Financial Information
• Testing Future Financial Information
• Assessment of Accounting Estimates
• Investigation and Evaluation of Management Framework
• Constructing Third-Party Estimates
• Study of Subsequent Circumstances
• Assessing Review Engagements

Unit 5: Analytical Procedures in the Audit of Financial Statements

• Concept and Goal of Analytical Procedures in Audits
• Considerations During Audit Planning
• Adoption of Relevant Analytical Procedures
• Use of Analytical Techniques During Review
• Determining the Level of Dependence on Analytical Procedures
• Recognition and Evaluation of Financial Statements