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4 - AAU - Accounting and Financial Auditing

AAU 318 - Fundamentals of Financial Accounting & International Standards in Auditing (ISA)

Code Start Date Duration Venue
AAU 318 18 September 2023 10 Days Istanbul Registration Form Link
AAU 318 13 November 2023 10 Days Istanbul Registration Form Link
AAU 318 04 December 2023 10 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

Cost-benefit analysis is used by governments and other organizations to evaluate the desirability of a given policy or to justify the allocation of scarce financial resources to attain an established performance goal. Cost-benefit analysis also provides a portable, scalable model for organizing facts, assumptions, estimates, and findings in support of complex decisions. This course introduces concepts that are applicable to selecting optimal decisions through the use of trade-off analysis. In the course, financial and program staff, such as budget and program analysts as well as project managers and contracting personnel, will learn to conduct accurate cost-benefit analyses, thereby identifying choices that increase public welfare and improve efficiency.

The second part of the course covers International Standards on Auditing (ISA). The auditor is obligatory to have knowledge about the whole text of an ISA, counting its application and other explanatory material, to be aware of the objectives and to apply the requirements aptly.

Course Objectives

    • Applying the framework of financial statements analysis
    • Demonstrating skills at the foundations of ratio and financial analysis
    • Carrying out company and industry analysis
    • Implementing the process of company evaluation and analysis
  • Gaining technical knowledge of the International Standards in Auditing
  • Recognize the role of the external auditor in adding value
  • Appreciating the responsibilities of the external auditor
  • Effective drafting of audit and management reports

Who Should Attend?

  • Accountants
  • External auditors 
  • Internal auditors 
  • Financial executives 

Course Details/Schedule

Day 1

  • Financial Statement Analysis: An Introduction:
  • Role of financial reporting and analysis
  • The core financial statements and the importance of the annual report
  • The important role of notes and supplementary information
  • Objective and types of audits of financial statements
  • Financial statement analysis framework
  • The accounting cycle
  • Financial reporting mechanics
  • Relationship, elements and classification of financial statements 

Day 2

  • Financial Analysis Techniques:
  • Ratio analysis
  • Liquidity: current, quick, and cash ratios
  • Asset management and activity ratios
  • Solvency: debt, equity, and times interest earned ratios 
  • Profitability: profit margin, gross margin, return on assets, return on equity
  • Market and valuation: price-earnings and earnings per share ratios
  • Vertical analysis and strategy: balance sheet and income statement approaches

Day 3

  • Financial Analysis Techniques Continued:
  • Trend analysis and growth
  • Leverage ratios
  • Gearing ratio
  • Sensitivity analysis & cost-benefit analysis
  • Npv analysis

Day 4

  • Financial Analysis Techniques Continued:
  • IRR
  • Inflation
  • Lost return on investment
  • Discounted cash flow analysis
  • Allowable payback period
  • Dupont analysis: the three-step and five-step models
  • Time-series and cross-sectional analysis
  • Limitation of ratio analysis 

Day 5

  • Financial Statement Analysis: Applications and Presentations:
  • Evaluating a company’s past performance
  • Comprehensive real-life analysis of publicly traded companies 

Day 6

  • International Standards in Auditing
  • Overview of International Standards in Auditing
  • Respective responsibilities (ISA 200-)
  • Audit planning (ISA 300-)
  • Internal control (ISA 400-)
  • Audit evidence (ISA 500-)
  • Work of external experts (ISA 600-)
  • Audit conclusion and report (ISA 700-)

Day 7

  •  Role of the External Auditor and Format of Audit Report
  • Role of the external auditor
  • ISA 200
  • Professional code of the external auditor
  • Overall objectives of independent auditor
  • Auditors responsibility
  • Understanding the entity and its environment
  • Obtaining sufficient evidence to form an opinion
  • Independence
  • Formulation of audit reports
  • ISA 700:
  • Audit reports: purpose, function and structure
  • Management report and implementation of recommendations
  • Management representation letter

Day 8

  • Internal Controls and Audit Planning
  • Internal controls
  • ISA 400
  • Corporate governance
  • Internal control environment
  • Audit planning
  • ISA 300:
  • Engagement evaluation
  • Analytical review
  • Materiality assessment
  • Inherent risk assessment
  • Fraud risk assessment
  • Audit plan and strategy
  • Overview of risk based audit principles

Day 9

  • Audit Engagement
  • Principles of substantive testing
  • Applicable audit assertions
  • Applying ISA 500:
  • ISA 500: Audit evidence
  • ISA 510: Initial Engagements – Opening Balances
  • ISA 520: Analytical Procedures
  • ISA 530: Audit Sampling and Other Means of Testing

Day 10

  • Applying ISA 500:
  • ISA 540 Auditing Accounting Estimates, including Fair Value Accounting Estimates and Related Disclosures
  • ISA 550 Related Parties
  • ISA 560 Subsequent Events
  • ISA 570 Going Concern
  • ISA 580 Written Representations