Description

Property, plant and equipment can range from a low risk to a high risk audit area, depending on the nature of transaction and events engaged in by the reporting entity. Construction, capitalized interest, and complex leasing arrangements tend to result in higher risk of material misstatement. This module addresses tips and techniques for auditing tangible long-lived assets for various assessed risk levels, with a special emphasis on lease accounting under Topic 842.

Major Topics:

• Typical audit risks and responses for tangible long-lived assets
• Special issues related to initial recognition and capitalization, including capitalized interest
• Key controls related to PP&E
• Lease accounting requirements and practical application of Topic 842