This course covers the key red flags auditors should watch for during audits. It explores risks in financial reporting, revenue recognition, internal controls, and compliance. The course helps auditors identify warning signs of potential fraud, misstatements, and issues like weak internal controls or suspicious audit evidence. It also addresses red flags in management behavior, cybersecurity, and going-concern evaluations.
Course Publication Date:
April 15, 2025
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$40.00!
| Author: | Kelen Camehl |
| Course No: | AUD-REDFLAGS-29005 |
| Recommended CPE: | 4.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Auditing
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Learning Objectives
- Identify red flags in financial statements that suggest potential misstatements or fraud.
- Recognize common issues in revenue recognition practices that could indicate improper reporting.
- Distinguish between normal financial reporting practices and warning signs of manipulation.
- Recognize behavioral red flags that may indicate fraudulent or unethical conduct.
- Identify management-related risks in estimates and representations that could affect audit outcomes.
- Determine when changes in management behavior require further investigation.
- Identify weaknesses in internal controls that may expose the organization to risk.
- Select the appropriate response when suspicious or incomplete audit evidence is found.
- Distinguish between valid and questionable audit evidence during the audit process.
- Recognize red flags in compliance audits that suggest potential violations or regulatory risks.
- Identify cybersecurity risks and indicators of inadequate protection measures.
- Determine when going-concern issues require further assessment or disclosure.