Audit Red Flags: Navigating Financial, Behavioral, and Control Risks in Auditing


Course Overview
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.  

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

Revision Date: NEW 1/24/2025

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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