Property, plant and equipment can range from 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 will address tips and techniques for auditing PP&E for various assessed risk levels.
Accountants responsible for auditing property, plant and equipment, including leases
* Discuss typical audit risks and special audit considerations * Tailor an detailed audit plan to respond to assessed risk of material misstatement * Explain key controls related to PP&E * Describe and apply lease accounting requirements * Explain the impact of recent lease accounting standard changes on both lessees and lessors
* Typical audit risks and responses * Costing and capitalization, including capitalized interest * Key controls related to PP&E * Lease accounting requirements and practical application * Recent changes to U.S. GAAP related to lease accounting