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 debt arrangements.
Accountants responsible for auditing accounts payable, accrued expenses and debt
* Discuss typical audit risks and special audit considerations * Tailor the audit plan in response to assessed risk of material misstatement * Evaluate results from a search for unrecorded liabilities * Assess the propriety of accrued estimates * Evaluate debt covenant compliance
* Typical audit procedures related to accounts payable and accrued expenses, including the search for unrecorded liabilities * Evaluating accrued estimates * Key controls related to liabilities * Auditing debt, including compliance with covenants * Determining the proper classification of debt * Proper form of noncompliance waiver letters * Impact of noncompliance on disclosures