Audit 205: Auditing Liabilities and Long-Term Debt Risks

Overview

Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure will discuss tips and techniques for auditing accounts payable, accrued expenses, and common long-term financing arrangements and related debt covenants. 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 more persuasive audit evidence. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

None

Objectives

Upon completion of this course, you will be able to...

• Identify typical audit risks and special audit considerations related to various liabilities
• Tailor the audit plan in response to assessed risk of material misstatement, focusing on the assertions with typically higher risk
• Evaluate results from a search for unrecorded liabilities and procedures to assess the propriety of accrued estimates
• Evaluate the completeness, classification, and disclosure of financing arrangements - including debt covenant compliance

Highlights

The major topics covered in this course include:

• 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