During an engaging guest lecture by Nicole Hartner, Senior Manager at EY, as part of the “Annual Financial Statement Audit” course, students in the Financial Management study programs received a concise and practical overview of key aspects of financial statement audits, with a focus on inventory.
In the area of inventory accounting, the presentation clearly demonstrated how cost of goods sold and changes in inventory are interrelated and the role that proper valuation plays, particularly with regard to the lower-of-cost-or-market principle. Building on this, typical audit procedures were explained, with inventory observation, the performance of cut-off tests, and analytical evaluations playing a central role and contributing to ensuring compliance.
Fighting Fraud with AI Tools
On the topic of fraud, the focus was on the fact that the audit should ensure that the financial statements are free from material misstatements, supported by interviews, the analysis of journal entries, and the use of modern methods such as AI-powered journal entry risk scoring.
In the area of digital audit, the session impressively demonstrated how data-driven tools such as EY Helix are used to make audits more efficient and, at the same time, more precise—for example, by examining margin analyses, transaction patterns, and correlations between revenue and cash flows.
Finally, the topic of reporting was addressed, with an explanation of the legal framework under the Austrian Commercial Code (UGB), the structure of the audit report, and the auditor’s opinion, while simultaneously emphasizing the importance of materiality, transparency, and clear communication.
The presentation thus offered a clearly structured and easily understandable insight into modern auditing, which is increasingly shaped by digitalization and plays a central role in fostering trust in corporate reporting.
>> More information about the Financial Management study programs