Auditing 2025: Auditing the Cash Flow Statement

This module will enable you to

• Recognise the standard classifications for cash flow activities
• Outline differences in the direct and the indirect method for reporting cash flows
• Emphasise why there is a need to audit the cash flow statement
• Discuss common errors in the preparation of cash flow statements

About the module

The cash flow statement is one of the primary financial statements, but in recent years, it has drawn criticism from professional bodies and regulators due to frequent errors and omissions. This highlights the importance of auditing to verify accuracy, ensure regulatory compliance, and help prevent fraud.

This module will give an overview of the cash flow statement and the standard classifications for entities' cash flow activities. It will also detail the correct audit procedures, and outline common errors in the preparation of the cash flow statement.