Cash Flow Manipulation - What You Need to KnowCode: 27-CASHFLOW

This course provides an overview of how operating cash flow can be manipulated and the techniques companies use to make liquidity appear stronger than it is. It covers classification-based schemes, including reclassifying financing activities, factoring receivables, and using supplier finance programs. The course also examines timingbased methods, such as accelerating collections, delaying payments, and short-term window dressing. In addition, it explores transaction structuring techniques and how cash flow can be influenced through prepayments, structured settlements, and other arrangements. Finally, the course addresses disclosure and presentation strategies that can conceal cash flow issues, including aggregation, selective narrative disclosures, and the use of non-GAAP liquidity measures.

Category: Auditing

Recommended CPE Hours: 4

Level of knowledge: Update

Prerequisite: Basic understanding of Auditing

Advanced Preparation: None