Covers the development of tests of controls and substantive tests for financial instruments.
Learning Objectives
- Learning Outcomes
- Recall the definition of key terms used in FASB ASC 820, Fair Value Measurement
- Recall the scope and required disclosures in FASB ASC 820.
- Recognize how to classify financial instruments by level within the fair value hierarchy and by type of instrument.
- Identify considerations related to initial recognition, subsequent measurement, and impairment.
- Recall the basic concepts included in other fair value standards (FASB ASC 718, Compensation–Stock Compensation, FASB ASC 815, Derivatives and Hedging, and FASB ASC 825, Financial Instruments).
- Identify differences between GAAP and IFRS.
Major Topics
Definition of financial instruments;Planning considerations when auditing financial instruments;Testing of financial instruments in audit;Risk-based auditing and valuation of financial instruments
