Implementing Efficient, Effective Internal Controls For Small to Mid-Size Businesses is a course that will identify the primary purpose of financial statement analysis. This course will examine financial statements through the lens of an analyst who does not prepare the statements. This course will identify the basic tools of analysis from a conceptual standpoint. This course will describe the various anomalies that may appear during analysis. Part 2 of this course will describe how to calculate and interpret ratios related to financial statements accounts. Participants will learn how to combine certain related ratios in order to better understand the financial issues facing any company and be able to apply these tools in a problem-solving case. Part 3 of this course will teach participants how to calculate return on invested capital by using the ROIC tree concept. Finally, participants will learn how to apply the ROIC tree in making day-to-day decisions to improve the return on invested capital. Part 4 of this course will teach participants how to identify the financial condition and profitability of the company and will teach how to apply improvement methods to increase the value of the company in the marketplace.
Upon successful completion of this course participant should be able to be complete the following objectives:
- Identify the primary purpose of financial statement analysis.
- Examine financial statements through the lens of an analyst who does not prepare the statements.
- Recognize the premise upon which analysis can occur.
- Recognize the basic tools of analysis from a conceptual standpoint.
- Identify anomalies that appear during analysis.
- Calculate and interpret ratios related to financial statements accounts.
- Combine certain related ratios in order to better understand the financial issues facing any company.
- Apply these tools in a practice problem-solving case.
- Calculate return on invested capital by using the ROIC tree concept.
- Identify the financial condition and profitability of the company.
- Identify of the nature of business risk and recognize how these risks can negatively impact the organization and the basic definition of internal controls and problems this definition has created.
- Recognize Chaos Theory and materiality as a vehicle to distinguish the difference between these concepts in an audit from the development and evaluation of internal controls.
- Recognize the role of ethics and integrity and identify how they affect the effectiveness of any internal control system.
- Identify the 2013 COSO model for evaluating and developing internal controls.
- Apply the concepts from the COSO model in real-world cases.
CPE Credits: 8 CPE for CPAs
Instructional Method: Self-Study
NASBA Field of Study: Accounting
Program Prerequisites: None
Advanced Preparation: None
Revision Date: April 6, 2021