There are no prerequisites

Course Description

Understanding your company’s financial health helps you allocate resources and pinpoint areas for development. With this course, you’ll learn how to interpret the corporate annual report, including financial statements, footnotes, review of operations, auditor's report, supplementary schedules, management discussion and analysis, and Management’s Report on Internal Control Over Financial Reporting. This course also covers how SOX 404 and traditional reporting differ. Finally, this course teaches you how to perform financial ratio and cash flow analyses.


Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.

Course Specifics

Oct 25, 2018
There are no prerequisites

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1:

  • Identify the basic financial statements of the annual report and their purpose: the balance sheet, income statement, and statement of cash flows.
  • Recognize the elements of the balance sheet.
  • Recognize how the income statement reveals the entity's operating performance.
  • Identify a company's cash inflows and cash outflows.
  • Identify the types of accounts that may exist in the financial statements.


Chapter 2:

  • Identify the other sections and items of the annual report.
  • Recognize auditing standards for internal control over financial reporting, including the Sarbanes-Oxley Act.


Chapter 3:

  • Identify important factors for financial statement analysis.
  • Recognize techniques of horizontal analysis and vertical analysis.
  • Calculate different types of ratio analysis.


Chapter 4:

  • Identify types of ratio analysis.
  • Recognize some of the limitations of different ratio analysis.
  • Apply financial ratios calculations.

Table of Contents

Chapter 1 – Annual Report: Its Components

Learning Objectives

What and Why of Financial Statements

More on the Income Statement

Classified Financial Statements

Classified Income Statement

Classified Balance Sheet


Liabilities and Stockholders' Equity

Statement of Cash Flows

Contents of the Statements of Cash Flows

Investing Activities

Financing Activities

Operating Activities

Cash Flow Analysis

Operating Section

Investing Section

Financing Section

Preparing and Analyzing the Statement of Cash Flows

Statement of Cash Flows and Corporate Planning

Chapter 1 Review Questions

Chapter 2 – Other Sections of the Annual Report

Learning Objectives

Other Sections in the Annual Report


Review of Operations

Auditor’s Report

Unqualified Opinion

Independent Auditor's Report

Qualified Opinion

Adverse or Disclaimer of Opinion

Notes to the Financial Statements (Footnotes)

Supplementary Schedules and Tables

Two-Year Quarterly Data

Segmental Disclosure

History of Market Price

How to Read a Quarterly Report

SEC Reporting Requirements -Integrated Disclosure System

S Forms

Management's Discussion and Analysis (MD&A)

The Sarbanes-Oxley Act

Key Points of Auditing Standard No. 5


Chapter 2 Review Questions

Chapter 3 – Analysis of Financial Statements for Liquidity, Asset Utilization, and Solvency

Learning Objectives

What and Why of Financial Statement Analysis

Horizontal and Vertical Analysis

Working with Financial Ratios


Asset Utilization

Solvency (Leverage and Debt Service)

Chapter 3 Review Questions

Chapter 4 – Analysis of Financial Statements for Profitability and Market Value

Learning Objectives

Profitability and Market Value


Market Value

An Overall Evaluation – Summary of Financial Ratios

Is Ratio Analysis a Panacea?

The Power of Cash Flow Ratios

Sufficiency Ratios

Efficiency Ratios

Sufficiency Ratios

Efficiency Ratios


Summary of Financial Ratios - Trend and Industry Comparisons

Chapter 4 Review Questions

Chapter 1 Review Question Answers and Rationales

Chapter 2 Review Question Answers and Rationales

Chapter 3 Review Question Answers and Rationales

Chapter 4 Review Question Answers and Rationales



Qualified Assessment

Answer Sheet

Course Evaluation

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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