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
Learning Objectives
- Discover and discuss typical audit risks and special audit considerations for tangible long-lived assets.
- Recognize and tailor a detailed audit plan to respond to assessed risk of material misstatement related to fixed assets and leases.
- Explore and explain key controls related to property, plant, and equipment.
- Discover and describe and apply lease accounting requirements, including the impact of Topic 842 lease accounting standard changes on both lessees and lessors.
Included In Certifications
This course is included in the following Certification Programs:
13 CoursesAudit Training Certification - Level 1 - Beginning Staff
- Professional Skepticism - Creating a Mindset for Finding Fraud and Error
- Audit Documentation - Creating Workpapers That Pass Review
- Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits
- The Audit Risk Model - Understanding Foundational Principles
- Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
- Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
- Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets
- Auditing Inventory - Performing Required Observations and Other Common Procedures
- Analytical Procedures - Comprehending Financial Statement Audit Fundamentals
- Audit Reporting Fundamentals - Introducing Core Concepts in the Audited Financial Statement Drafting and Issuance Process
- AICPAs Code of Professional Conduct - Exploring the Foundational Principles Underlying the CPA Profession as a Whole
- 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
No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Accountants responsible for auditing property, plant and equipment, including leases.