Credibility and Disclosure in an Annual Report


Overview/Description
This course will familiarize business managers, financial professionals, and other business professionals with methods to determine the credibility of an annual report, as well as the degree of disclosure that is required. The course begins by examining how the CPA can address credibility issues, primarily through the auditing process. It also examines the important contribution of the notes towards an analysis of financial statements.

Target Audience
This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.

Expected Duration
2.5 hours

Lesson Objectives:

Reading an Annual Report

  • recognize the importance of a financial report's credibility, in order to gain a complete picture of the company's performance and accounting methods.
  • identify and distinguish the primary indicators of a credible annual report.
  • interpret an auditor's opinion of a financial report.
  • determine the amount and type of disclosure that is required for an annual report.
  • determine the quality of a company's earnings, based on trends within a financial report.
  • Notes to Financial Statements

  • recognize the necessity of understanding the notes to a financial report.
  • determine which items of disclosure must appear in the notes to a financial report.
  • differentiate between additional disclosure information and information that does not belong in the notes.
  • analyze information within the notes that provides particularly relevant information to the performance management of the business.
  • Course Number: FIN0257