Judgment in Financial Statements

(Music) I'm Dr. Hernan Murdock, and I've been involved in internal auditing for many years. And one of the things that we have spent a lot of time doing is reviewing financial statements and the processes that result in the preparation of these financial statements. And an important part of that is the application of judgment. So we have with us to help us better understand this subject and how we can better serve our clients, Deidre Melton. Hello, Deidre. Hello, Hernan. Tell me about yourself and your background in this area? So I've been an auditor for 16 plus years. I know, yeah, that really dates me a little bit, right? But no matter whether you're dealing with financial statement audits or any other type of audit, there's always gonna be some type of professional judgment involved. But in financial statements, it's even more critical that we understand the use of professional judgment, not just that we're using as auditors, but that they're using to build those financial statements. So is this course designed for internal auditors or for those in the accounting and financial reporting processes? I think it is a little bit of both because from the audit standpoint, we're gonna learn about the different areas where financial professional judgment is being utilized. We're gonna think about best practices for identifying that, for handling those. But also from an accounting standpoint, you really wanna understand where auditors are looking at. What are they being asked to review? What is the expectations from an accountant that you are able to explain from your standpoint of how you made your judgment? So I think it's a two way street. This is a collaborative session that both can get a lot of good information out of. Wonderful, this is great. Thank you very much, Deidre, and I'm looking forward to all of the topics we're going to cover. So let's learn together. (Music)