The completeness and proper classification of liabilities are the typical higher audit risks. The complexity of the debt financing arrangements may create a significant risk requiring special audit consideration. This module will discuss tips and techniques for auditing accounts payable, accrued expenses, and common long-term financing arrangements and related debt covenants.
Major Topics:
- Typical audit procedures related to accounts payable and accrued expenses, including the search for unrecorded liabilities
- Key controls related to liabilities
- Auditing long-term debt, including compliance with covenants
- Determining the proper classification of financing arrangements
- Proper form of noncompliance waiver letters
- Impact of noncompliance on disclosures
Learning Objectives
- Discover and discuss typical audit risks and special audit considerations related to various liabilities.
- Recognize and tailor the audit plan in response to assessed risk of material misstatement, focusing on the assertions with typically higher risk.
- Explore and evaluate results from a search for unrecorded liabilities and procedures to assess the propriety of accrued estimates.
- Discover and evaluate the completeness, classification, and disclosure of financing arrangements – including debt covenant compliance.
Last updated/reviewed: March 13, 2024
Included In Certifications
This course is included in the following Certification Programs:
13 CoursesAudit Training Certification - Level 2 - Experienced Staff
- Fraud Risk - Complying with Minimum Audit Requirements
- Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
- Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
- Inquiry and Research - Improving Critical Audit Skills
- Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
- Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
- Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
- Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
- Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
- Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
- Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
- Accounting Update - Hot Topics for Preparing Current Period Financial Statements
- Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
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Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for auditing accounts payable, accrued expenses and debt.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
![Instructor for this course Instructor for this course](https://www.illumeo.com/sites/proformative.com/files/imagecache/user_image_large/pictures/picture-120060-1624953273.jpg)
Jennifer LouisCPA, President of Emergent Solutions Group LLC