Audit 108: Auditing PP&E and Leases - Common Risks

Overview

Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets will address tips and techniques for auditing tangible long-lived assets for various assessed risk levels, with a special emphasis on lease accounting under Topic 842. 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 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 for tangible long-lived assets
• Tailor a detailed audit plan to respond to assessed risk of material misstatement related to fixed assets and leases
• Recall key controls related to property, plant, and equipment
• Recognize and apply lease accounting requirements, including the impact of Topic 842 lease accounting standard changes on both lessees and lessors

Highlights

The major topics covered in this course include:

• 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