Accounting for and Auditing Complex Investments (A3S8)

Overview

As companies look for greater investment returns in the current low interest rate environment, they are often investing in more risky types of investments, such as cryptocurrency. Further, as they look to hedge business risks, companies are frequently entering into derivative transactions, which both can contain unexpected risk and accounting complexity. As you advance in your audit careers, you will be faced with both understanding the accounting for and auditing these complex financial statement areas. In this course, we’ll review the accounting models of several types of complex investments and review common audit procedures in these areas. (Please Note: This module is part of Surgent's Audit Skills Training: Level 3.)

Major Topics:

• The fair value measurement process
• Derivative and hedge accounting under ASC 815
• Accounting and auditing considerations related to the use of the equity method of accounting under ASC 323
• Accounting and auditing considerations related to investments in cryptocurrency and digital assets

Learning Objectives:

• Recall fair value accounting guidance under ASC 820
• Recall the accounting guidance related to hedging transactions and other complex investments
• Identify common audit procedures related to complex investments