Financial Audit Practice Exam

About Financial Audit
A financial audit is an objective examination and evaluation of the financial statements of an organization to make sure that the financial records are a fair and accurate representation of the transactions they claim to represent.

In a financial statement audit, the auditors look through the financial information for your company. They scrutinize accounting policies and a company’s internal controls. They make sure that all the elements of a set of financial statements — the balance sheet, income statement, statement of cash flows, and the footnotes and disclosures — are all correctly classified, complete, and accurate within materiality.

Financial auditing has these main objectives:
•    To evaluate whether the financial statements are materially correct, complete, and reported in accordance with generally accepted accounting principles (GAAP)
•    To assess the possibility of fraud at the organization
•    To gauge whether the organization will remain a viable business, also known as a going concern
•    To identify ways that a company can improve its business

Financial Audit has gained immense popularity across the globe resulting in huge demand for certified professionals.

Why is Financial Audit important?
There are many benefits that a business entity can avail by conducting a financial audit, which are
•    Maintains Consistency - By being compliant with the specified provisions, the Auditing process may take lesser time.
•    Determine Profit or Loss
•    Helps in Obtaining Loan - As the financial books have been reviewed and audited, they would project the right image of the business and thus allow banks and other financial institutions to give out loans and other financial help to the company. .
•    Assists in Determining the Total Tax
•    Help in Fraud Detection
•    Assists in Preparing Future Plans
•    Provides Evidence
•    Increases Goodwill

Certified Financial Audit professionals, executives and managers are in high demand in companies across the globe.

Important Concepts for Financial Audit Practice Exam

• Basic Accounting Principles
• Accounting Transactions and Books of Account
• Cash Flow Analysis
• Audit Risk and Materiality
• Financial Statement Auditing
• Audit Assertions
• Auditor's Professional & Ethical Responsibilities
• Audit Quality
  

Who should take the Financial Audit Exam?
•    Accounting or finance or audit professionals
•    Business owners or Entrepreneurs
•    Anyone who wants to assess their financial auditing skills
•    Accounting or finance or audit managers and senior executives
•    Audit consultants
•    Professionals working in outsourced companies responsible for financial audit
•    Anyone interested in auditing
•    Students

Financial Audit Practice Exam Objectives

Financial Audit exam focuses on assessing your skills and knowledge in auditing financial details.

Financial Audit Practice Exam Pre-requisite

There are no prerequisites for the Financial Audit exam. Candidate should be well versed  in auditing financial details to clear the exam.

Financial Audit Certification Course Outline

1. Basic Accounting Principles and Framework
1.1. Learning to Understand Accounting
1.2. Assumptions, Principles, and Conventions of Accounting
1.3. Global Standards for Accounting

2. The Accounting Equation and Financial Statements
2.1. The Accounting Equation
2.2. Double-entry, Debits, and Credits
2.3. Understanding Financial Statements

3. The Accounting Cycle and Accrual Accounting
3.1. The Accounting Cycle
3.2. Chart of Accounts
3.3. Cash and Accrual Accounting

4. Accounting Transactions and Books of Account
4.1. General Journals and Special Journals
4.2. General Ledgers and Subsidiary Ledgers
4.3. Posting Accounting Transactions

5. Cash Flow Analysis
5.1 Cash Flow Analysis Basics
5.2 Cash Drivers
5.3 Cash Flow Statement Structure
5.4 Forecast the cash flow
5.5 Calculate the monthly cash flow
5.6 Discounted Cash Flow Method
5.7 Build up the assumptions and formulas
5.8 Impact on balance sheet and capitalization

6. Auditing
6.1 Audit Risk and Materiality
6.2 Financial Statement Auditing
6.3 Audit Assertions
6.4 Auditor's Professional & Ethical Responsibilities
6.5 Audit Quality

Exam Format and Information
Certification name – Financial Audit Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199