Auditing Investments – Understanding Risks and Procedures for the Most Common Investments

Learning Objectives

• To explain typical audit risks associated with auditing the most common investments.
• To analyze how to tailor the audit plan to assess risks of material misstatement.
• To identify and describe the fundamental principles of accounting for common derivatives.
• To discuss fair value presentation and disclosure requirements.

Course Description

Many small- and mid-size entities hold fewer complex investments, including mutual funds, ‘plain vanilla’ derivatives (such as interest rate swaps), and permanent life insurance policies. As auditors, we usually audit investments that the client has on their financial statements by testing various audit assertions including existence, completeness, valuation, and rights and obligations. 

In the audit procedures for investments, we need to test various audit assertions:

• Existence, 
• Valuation, 
• Completeness, and
• Rights and obligations. 

Major topics covered in this CPE Auditing webinar are:

• Overview of the most common investment types
• Typical audit risks and related audit procedures for common investments
• The basics of accounting for equity investments in other entities
• Understanding common ‘plain vanilla’ derivatives, like interest rate swaps
• Fair value disclosure, including applying the fair value hierarchy

This CPE webinar will provide an overview for evaluating the proper recognition, measurement, and disclosure of the most common investment types.

Here is the link to your interests: Accounting & Auditing CPE Courses | CPE Courses for Certified Internal Auditors

Overview

• Nonprofit entity accounting

  5 mins
• Typical audit procedures

  10 mins
• Alternative investments with net asset value per share

  29 mins
• Analytical procedures

  49 mins
• Variable interest entity

  64 mins
• Fair value hedge accounting

  87 mins
• Key Decision points

  98 mins