A key skill for modern-day auditors, analysts and finance to accurately assess the reliability of an organisation’s financial results is an understanding of how costs behave under different business conditions. The Cost Behaviour and Audit Implications Training Program from the Imperial Corporate Training Institute is designed to provide a high level of practical knowledge and understanding of different types of cost structures and their patterns and, more importantly, how these patterns directly relate to a financial audit. By understanding how fixed, variable and mixed (semi-variable) costs respond to increased activity levels, the participants of this program gain insight into the impact that these responses will have on their ability to assess and evaluate the reliability of a company’s financial results through the use of financial report preparation and review, budgeting and planning, internal controls and control activities, and audit conclusions and opinions.
This course will assist financial auditors in enhancing their skills in Cost Behaviour Analysis and understanding how this knowledge will play a significant role in planning their audit, assessing risks associated with their audit, and having an impact on their audit results. The program will provide the participants with a clearer understanding of the relationship between management accounting and financial auditing by demonstrating how cost information can support an audit’s evidence, improve the analytical procedures of the auditors, and improve the auditor’s profession through the use of scepticism. By providing many examples of real-world applications of cost behaviour analysis, this program will enhance the ability of its participants to effectively interpret cost data, identify abnormalities or misstatements of costs, and assess the adequacy and reliability of all types of cost-based financial information in complex organisations.
Objectives
By the end of the Cost Behavior and Audit Implications Training Course, participants will be able to:
- Understand the key aspects of how costs behave and how this relates to financial audits
- Distinguish between fixed, variable, semi-variable and step costs in real-world situations
- Use cost analysis methods to help you with audit planning and analytical work
- Evaluate cost behaviour and its effect on budgeting, forecasting and creating financial statements
- Evaluate the impact of wrongly classifying costs or applying incorrect cost allocation methods during an audit
- Recognise cost risk when auditing to assess the potential for audit failures or integrity breaches
- Enhance professional judgement when reviewing cost data during the course of an audit
- Improve the quality of the audit evidence through gaining insight into cost behaviour
- Improve communication with management on the types of costs being incurred, and the risk of financial misstatement
- Align evaluation of cost behaviour with International Auditing Standards and other leading best practice methodologies
Target Audience
This course serves as an excellent resource for:
- Both internal and external auditors who want to improve the quality of their analytical audit procedures
- Financial controllers, finance managers and others involved in tracking and reporting costs
- Management accountants who are responsible for planning and assessing the performance of costs
- Both audit associates and audit seniors who want to enhance their technical skills
- Risk and compliance personnel who assess financial and operational risk
- Cost accountants who are engaged in the analysis of production and service costs
- Financial analysts who evaluate cost trends and the financial performance of a company