Cash Flow Manipulation – What You Need to Know ON DEMAND

Overview

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 timing-based 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.

Highlights

Operating cash flow manipulation. Reclassifying financing activities. Timing-based cash manipulation methods.

Prerequisites

None.

Designed For

Auditors, CPAs, CEOs, and other accounting professionals.

Objectives

Identify ways cash flows can be misclassified to inflate operating cash flow. Recognize the impact of reclassifying financing activities on liquidity metrics. Differentiate between legitimate and manipulative classification of receivables and supplier finance. Determine how classification choices affect financial statement analysis.

Preparation

None.

Notice

None.