Level I - Financial Statement Quality

Target Audience

This workshop is for all beginning credit analysts and lenders. It may be appropriate as a refresher for more experienced analysts and lenders.

Level I
111		The Language of Business
121		Differences in Business Organizations
131		Financial Statement Quality

Course Objectives

	Provide a clear understanding of the likely differences in the quality, reliability and usefulness of financial information associated with company prepared, compiled, reviewed and audited statements;
	Examine and appreciate the different analytical challenges associated with company prepared, compiled, reviewed and audited statements;
	Identify the use of estimates in financial statements and understand the importance of estimate accuracy in providing a fair representation of the company's financial position;
	Explore the linkage between the income statement and the balance sheet;
	Examine the role footnotes play in amplifying specific accounts in the financial statements, as well as providing additional information about debt service capabilities; and
	Appreciate the uses and limitations of interim statements and the uses and limitations of performance ratios based on those statements.

6 CEUs

Course Materials

	Note on Financial Statement Preparation and Risk Assessment
	Note on Using Footnotes in Assessing Risk
	1998 Management Prepared Financial Statements for Gemini Press, Inc.
	1998 Compiled Financial Statements for Gemini Press, Inc.
	1998 Reviewed Financial Statements for Gemini Press, Inc.
	2001 Financial Statements for Information Access, Inc.
	Exercise Set (downloaded from Shockproof! Training website)
	Online Review Quizzes
	Solution Set (downloaded from Shockproof! Training website)
	Access to the Shockproof! Training Resource Center
	Inclusion in the Shockproof! Training Discussion Forum
	Online Credit Skills Proficiency Exam

Upon Completion

Participants who successfully complete the workshop will be able to:

	Identify and assess the likely differences in the quality, reliability and usefulness of financial information associated with company prepared, compiled, reviewed and audited statements;
	Identify the different analytical challenges associated with company prepared, compiled, reviewed and audited statements;
	Understand and evaluate the use of estimates in financial statements and the importance of estimate accuracy in providing a fair representation of the company's financial position;
	Identify the linkage between the income statement and the balance sheet;
	Appreciate the role footnotes play in amplifying specific accounts in the financial statements, as well as providing additional information about debt service capabilities; and
	Assess the uses and limitations of interim statements and the uses and limitations of performance ratios based on those statements.