Course Introduction
The Accounting Policy Changes and Error Correction Audit Training Course provides a practical framework for identifying, accounting for, and auditing changes in accounting policies, changes in accounting estimates, and corrections of accounting errors. The program is designed for external auditors, internal auditors, accountants, financial reporting specialists, finance managers, controllers, and professionals responsible for ensuring accurate and consistent financial reporting.
The course examines the critical distinction between accounting policy changes, changes in accounting estimates, and prior-period errors. Participants will develop practical techniques for evaluating management's classification of changes and determining whether the underlying circumstances support the accounting treatment applied. Particular attention is given to distinguishing genuine changes in circumstances or information from attempts to alter accounting outcomes through inappropriate reclassification or retrospective adjustment.
A significant focus is placed on retrospective and prospective accounting treatments. Participants will examine how policy changes and error corrections can affect opening balances, comparative information, retained earnings, assets, liabilities, income, expenses, and other components of equity. The course develops audit procedures for recalculating adjustments, testing restated comparative amounts, validating supporting evidence, and assessing whether the resulting financial statements remain internally consistent.
The program addresses the role of materiality and professional judgment in identifying and correcting accounting errors. Participants will learn how to evaluate misstatements individually and in aggregate, investigate recurring errors, distinguish isolated mistakes from systemic control deficiencies, and assess whether corrections have been appropriately recorded. Practical techniques for examining journal entries, reconciliations, prior-year audit findings, management adjustments, and financial statement restatements are incorporated throughout.
Internal controls and governance are central to the course. Participants will evaluate controls over accounting policy approval, technical accounting assessments, estimate changes, error identification, financial close, journal entries, comparative information, disclosure preparation, and management review. The program also addresses fraud risks involving intentional misclassification, earnings management, selective error correction, unsupported policy changes, management override, and inappropriate retrospective adjustments.
Technology and data analytics are incorporated into modern accounting policy and error-correction audits. Participants will examine ERP systems, financial reporting platforms, automated journal entries, accounting policy databases, disclosure-management tools, data analytics, AI-assisted technical accounting research, and continuous monitoring. The course highlights risks involving system configuration, data integrity, automated adjustments, audit trails, access controls, and technology-generated accounting conclusions.
Duration
5 days
Who Should Attend
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External auditors responsible for auditing accounting changes and prior-period error corrections.
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Internal auditors reviewing financial reporting controls and accounting change processes.
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Audit managers and supervisors handling complex financial reporting judgments.
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Financial accountants responsible for accounting policies, estimates, and error corrections.
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Finance managers overseeing financial reporting and period-end adjustments.
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Financial controllers responsible for accounting consistency and financial statement accuracy.
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Financial reporting specialists dealing with policy changes, estimates, and restatements.
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Accounting policy professionals responsible for technical accounting assessments.
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Internal control professionals evaluating financial reporting control effectiveness.
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Risk and compliance professionals assessing financial reporting and governance risks.
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Audit committee and finance governance professionals reviewing significant accounting matters.
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Forensic auditors investigating potentially intentional accounting manipulation or restatements.
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Data analysts supporting financial reporting review and journal entry analytics.
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Professionals involved in financial close, consolidation, and comparative financial statement preparation.
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Accounting, audit, finance, and reporting professionals seeking advanced error correction and accounting policy audit expertise.
Course Objectives
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Develop practical expertise in auditing accounting policy changes, changes in accounting estimates, and corrections of prior-period errors.
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Distinguish accounting policies, accounting estimates, and errors and assess the appropriate accounting treatment for each category.
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Evaluate management's rationale for accounting changes and determine whether supporting evidence demonstrates a genuine basis for the change.
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Audit retrospective adjustments, restatements, opening balance corrections, comparative information, and related changes in equity.
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Assess prospective accounting treatments for changes in estimates and test whether revised assumptions are supported by new information or changed circumstances.
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Identify material and immaterial errors and evaluate their individual and aggregate effects on financial statements and disclosures.
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Apply substantive testing, analytical procedures, journal entry testing, reconciliations, and recalculations to validate accounting corrections.
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Evaluate controls over accounting policy governance, financial close, error identification, technical accounting reviews, journal entries, and disclosure preparation.
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Identify fraud risks involving earnings management, intentional misclassification, selective error correction, management override, and unsupported accounting changes.
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Prepare audit working papers, findings, recommendations, and conclusions that clearly document accounting judgments, evidence, materiality, corrections, and disclosures.
Comprehensive Course Outline
Module 1: Accounting Policy Changes and Error Correction Audit Fundamentals
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Understanding accounting policies, accounting estimates, prior-period errors, and their significance to reliable financial reporting.
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Examining the financial reporting and audit risks arising when accounting changes are incorrectly classified or applied.
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Linking accounting changes and error corrections to audit assertions, materiality, professional judgment, and financial statement risk.
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Developing a risk-based audit approach for accounting changes based on magnitude, complexity, management judgment, and reporting impact.
Module 2: Accounting Policies, Estimates, and Error Classification
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Distinguishing accounting policies from accounting estimates and identifying the characteristics of each within practical financial reporting situations.
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Identifying prior-period errors arising from mathematical mistakes, incorrect application of accounting requirements, omissions, misuse of information, or other reporting failures.
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Evaluating management's classification of a proposed accounting change and challenging unsupported or inconsistent explanations.
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Reviewing technical accounting memoranda, management papers, prior financial statements, contracts, and other evidence supporting classification decisions.
Module 3: Accounting Policy Changes and Retrospective Application
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Auditing changes in accounting policies and evaluating whether the circumstances justify changing the accounting approach applied by the entity.
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Testing retrospective application through recalculation of prior-period comparative amounts and adjustments to opening balances where required.
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Assessing the impact of policy changes on assets, liabilities, income, expenses, retained earnings, equity, and related financial statement disclosures.
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Reconciling restated financial information to prior audited balances, adjustment schedules, general ledger records, and supporting calculations.
Module 4: Changes in Accounting Estimates and Prospective Treatment
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Understanding changes in estimates arising from new information, developments, experience, updated assumptions, or changing circumstances.
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Auditing revised estimates such as useful lives, provisions, impairment assumptions, expected losses, valuation inputs, and other significant financial reporting estimates.
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Evaluating whether changes are supported by reliable new information rather than representing inappropriate attempts to alter reported results.
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Testing prospective recognition of estimate changes and assessing consistency between revised assumptions, accounting records, and financial statement disclosures.
Module 5: Prior-Period Errors, Materiality, and Restatement
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Identifying prior-period errors and evaluating whether they are material individually or when aggregated with other known and projected misstatements.
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Recalculating error corrections and testing their impact on comparative information, opening balances, retained earnings, assets, liabilities, income, and expenses.
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Evaluating management's assessment of materiality and investigating differences between identified errors and recorded correction amounts.
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Assessing recurring errors and determining whether they indicate weaknesses in accounting processes, controls, training, systems, or management review.
Module 6: Journal Entries, Reconciliations, and Substantive Audit Testing
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Testing journal entries used to record policy changes, estimate changes, prior-period corrections, and related financial statement adjustments.
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Reconciling correction schedules to general ledger balances, subledgers, trial balances, financial statements, and supporting documentation.
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Performing substantive procedures over affected financial statement balances and testing whether corrections have been completely and accurately recorded.
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Applying analytical procedures and trend analysis to identify unusual changes in reported results following accounting adjustments or restatements.
Module 7: Controls, Governance, and Management Override Risks
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Evaluating controls over accounting policy approval, technical accounting assessments, changes in estimates, error identification, and financial reporting adjustments.
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Reviewing governance processes involving finance leadership, technical accounting teams, management, audit committees, and external auditors.
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Identifying management override risks involving unsupported policy changes, selective corrections, delayed error recognition, and earnings management.
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Assessing control deficiencies and developing recommendations to strengthen accounting change approval, documentation, review, escalation, and monitoring processes.
Module 8: Technology, Data Analytics, Automation, and Emerging Risks
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Auditing ERP configurations, financial reporting systems, automated journal entries, consolidation tools, and disclosure-management platforms supporting accounting changes.
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Using data analytics to identify unusual journal entries, large retrospective adjustments, unexpected period-end corrections, recurring errors, and unusual account movements.
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Evaluating data lineage between accounting systems, technical accounting analyses, correction schedules, reporting databases, and published financial statements.
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Assessing emerging risks involving AI-assisted accounting research, automated accounting recommendations, system-generated adjustments, cybersecurity, access controls, and audit-trail integrity.
Module 9: Financial Statement Presentation, Disclosures, and Audit Evidence
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Auditing disclosures concerning accounting policy changes, changes in estimates, prior-period errors, restatements, significant judgments, and related financial effects.
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Testing whether comparative information and opening balances have been appropriately adjusted and consistently presented after corrections.
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Evaluating the consistency between financial statements, notes, accounting policies, management explanations, board documentation, and audit evidence.
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Preparing working papers that clearly document classification, materiality, calculations, evidence, management judgments, exceptions, and final audit conclusions.
Module 10: Integrated Accounting Change and Error Correction Case Studies
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Conducting an end-to-end audit of a proposed accounting policy change and determining the appropriate accounting treatment and financial reporting consequences.
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Investigating a prior-period error involving incorrect accounting, quantifying its effect, and testing the proposed correction and comparative restatement.
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Analyzing practical cases involving changes in estimates, management bias, recurring errors, journal entry manipulation, and inadequate disclosure.
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Preparing audit findings, recommendations, management communications, correction schedules, and final conclusions concerning accounting changes and error corrections.
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
