Differences among auditing, attestation, and assurance services
Four audit opinions and when each is issued, including going-concern emphasis
Auditor actions when substantial doubt exists about going concern
Internal vs external audit roles, objectives, and reporting lines
Sarbanes-Oxley basics: CEO/CFO certification and enhanced accountability
Audit committee responsibilities and independence/financial expertise requirements
Key auditing standards and oversight: PCAOB vs AICPA
Audit process overview: client acceptance, planning, testing, and reporting
Independence in fact vs appearance and why both are essential
Engagement letter purpose: scope, responsibilities, and terms of the audit
Types of audit tests, audit risk model, and core procedures/evidence (vouching vs tracing)
Fraud triangle factors and management assertions categories used to audit financial statements
About the free online course
Strong financial decisions depend on trustworthy information, and auditing is the discipline that helps make financial statements credible for investors, lenders, regulators, and business leaders. This free online course builds a clear, practical understanding of what an audit is, why it matters, and how auditors reach conclusions that others can rely on. You will learn to think like an auditor, connecting professional judgment with structured processes that support quality and consistency in real-world engagements.
The course explains how auditing extends beyond legal compliance, highlighting its role in accountability, transparency, and confidence in capital markets. You will explore the difference between auditing, attestation, and assurance, and develop the ability to interpret the meaning and impact of common audit opinions, including the going concern concept and what it signals about an entity’s ability to continue operating. By understanding how audit conclusions are communicated, you will be better prepared to read audit reports with a critical, informed lens.
You will also examine the modern governance and regulatory environment that shapes the profession. Topics such as internal versus external audit, the purpose of audit committees, and the importance of clear ethical expectations help you see how organizations protect stakeholders and manage oversight. The course provides essential context on key standards-setters and why auditing standards exist, helping you understand how auditors align their work with professional requirements while maintaining consistency across engagements.
From engagement planning through evidence gathering, you will learn the logic of the audit process: accepting or continuing a client relationship, setting expectations through an engagement letter, and protecting independence both in fact and in appearance. You will strengthen your grasp of how auditors assess risk, design procedures, and use tests to support conclusions. Concepts such as the fraud triangle, audit risk model, and management assertions connect business realities with audit objectives, while key ideas like vouching versus tracing clarify how evidence supports completeness and accuracy. By the end, you will have a solid foundation for further study or career growth in accounting, audit, finance, or compliance.
Course content
Video class: What is an Audit?06m
Exercise: What is the primary purpose of an audit in the context of financial statements?
Video class: Why Auditing is Important07m
Exercise: Why is auditing important beyond legal requirements?
Video class: Auditing, Attestation, and Assurance05m
Video class: The 4 Types of Audit Opinions06m
Video class: Going Concern Opinion03m
Exercise: What action must an external auditor take if they conclude that there is substantial doubt about an entity's ability to continue as a going concern?
Video class: Internal Audit vs External Audit03m
Video class: The Sarbanes Oxley Act of 200210m
Exercise: What was one of the key requirements imposed on the CEOs and CFOs of publicly traded companies by the Sarbanes-Oxley Act?
Video class: The Audit Committee04m
Exercise: What is a key requirement for members of the Audit Committee in a corporation?
Video class: Auditing Standards05m
Video class: PCAOB vs. AICPA Auditing Standards04m
Video class: The Audit Process06m
Video class: Client acceptance or continuance02m
Video class: Independence in Fact vs. independence in Appearance02m
Exercise: Why is it important for an auditor to have both independence in fact and independence in appearance?
Video class: The Engagement Letter01m
Exercise: What is the primary purpose of the engagement letter between an auditor and a client?
Video class: The 3 Types of Audit Tests04m
Video class: The Fraud Triangle03m
Exercise: What are the three factors of the fraud triangle?
Video class: The Audit Risk Model07m
Video class: 9 Types of Audit Procedures and Evidence06m
Video class: Vouching vs. Tracing02m
Video class: Management Assertions (Auditing)03m
Exercise: What are the two general categories of management assertions in financial statements?
Video class: Assertions about Classes of Transactions and Events (Auditing)05m
Exercise: Which of the following assertions is primarily concerned with ensuring that recorded transactions actually happened and is focused on the risk of overstatement?
Video class: Assertions about Account Balances (Auditing)05m
Video class: The 5 Components of Internal Control05m
Exercise: Which component of internal control focuses on evaluating the effectiveness of internal controls over time?
Video class: The Auditor's Consideration of Internal Control03m
Video class: 4 Types of Tests of Controls04m
Video class: Segregation of Duties06m
Video class: Types of Internal Control Deficiencies03m
Exercise: When assessing internal control deficiencies in a publicly traded company, which of the following scenarios is an example of a deficiency in operation?
Video class: Material Weakness vs. Significant Deficiency06m
Video class: 4 Indicators of a Material Weakness02m
Exercise: Which of the following scenarios would indicate a material weakness in a company's internal controls during an audit?
Video class: Reporting a Material Weakness02m
Video class: Check Kiting (fraud scheme)04m
Video class: Lapping (fraud scheme)04m
Video class: Audit Sampling08m
Exercise: Which of the following best describes audit sampling in accounting?
Video class: Statistical vs Nonstatistical Sampling03m
Video class: Sampling Risk vs. Nonsampling Risk04m
Exercise: What is an example of nonsampling risk in auditing?
Video class: Attributes Sampling04m
Video class: 4 Sampling Approaches03m
Exercise: In auditing, which sampling method involves selecting every nth item from a population?
Video class: Variables Sampling03m
Video class: Monetary Unit Sampling03m
Exercise: What is the primary advantage of using monetary unit sampling in auditing account balances?
Video class: Classical Variables Sampling01m
Video class: 4 Factors That Affect Sample Size03m
Video class: How to Calculate Sample Size (Classical Variables Sampling)02m
Video class: Difference Estimation (Variables Sampling)03m
Exercise: In a difference estimation audit method, after calculating the average difference between the audit value and book value for a sample of an account, what is the next step?
Video class: Ratio Estimation (Variables Sampling)02m
Video class: Mean-per-unit Estimation (Variables Sampling)02m
Exercise: When performing an audit of accounts payable using mean per unit estimation, how is the implied audit value for the entire population calculated?
Video class: Understanding the Revenue and Collection Cycle06m
Video class: Revenue Accounts and Management Assertions04m
Exercise: In the auditing process of a company's revenue and collection cycle, what is the primary reason sales revenue is always treated as a significant account?
Video class: How to Assess Inherent Risk and Control Risk for Revenue03m
Video class: Internal Control | Revenue Cycle03m
Exercise: What is a crucial step an auditor must take before testing a company's internal controls in the revenue and collection cycle?
Video class: How to Test Internal Controls | Revenue and Collection Cycle04m
Video class: Substantive Procedures for the Revenue and Collection Cycle08m
Exercise: What is the primary purpose of performing substantive procedures in the audit process?
Video class: The 6 Steps of the Purchasing Process09m
Video class: Significant Accounts in the Purchasing Process08m
Exercise: In the context of auditing the purchasing process, which assertion is most crucial when verifying accounts payable due to management's incentive to understate their liabilities?
Video class: Inherent Risk and Control Risk for Purchasing07m
Video class: How to Evaluate Internal Controls for the Purchasing Process16m
Exercise: In the context of auditing the purchasing process, what is a key purpose of conducting a walkthrough?
Video class: Testing Internal Controls for the Purchasing Process18m
Video class: Substantive Procedures for the Purchasing Process13m
Exercise: What is a key reason for auditors to perform substantive procedures during the purchasing process audit?
Video class: Why Auditing the Payroll Cycle is Important06m
Video class: The 6 Steps of the Payroll Cycle06m
Exercise: What is the first step in the payroll cycle as discussed in the Edspira lecture on auditing in accounting?
Video class: Auditing Payroll Accounts07m
Video class: Audit Risk for Payroll Cycle08m
Exercise: What is the primary reason why a high level of executive compensation increases inherent risk in the payroll cycle?
Video class: Internal Controls | Payroll System15m
Video class: How to Test Internal Controls | Payroll09m
Exercise: What is one method an auditor can use to test the effectiveness of internal controls in the payroll cycle?
Video class: Substantive Procedures for Auditing Payroll Cycle07m
What are the four types of audit opinions on financial statements?
The four opinions are unqualified, qualified, adverse, and disclaimer of opinion. An unqualified opinion indicates the statements are fairly presented in all material respects.
What is the difference between vouching and tracing in an audit?
Vouching starts with accounting records and checks back to supporting documents, helping test occurrence. Tracing starts with source documents and follows them into records, helping test completeness.
What happens when an auditor has substantial doubt about a company's going concern status?
The auditor evaluates management's plans and, when required, includes a going-concern section in the audit report to highlight the substantial doubt.
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Course comments: Auditing in Accounting
Precious Babirye
It is very knowledgeable and helpful.
Artem Zverev
Cool