Construction contractors present significant auditing challenges, since they rely extensively on estimates to derive their reported revenue and profit figures. In the Auditing Construction Contractors course, we examine how the auditor can navigate these challenges by delving into contractor controls, as well as audit procedures that are specific to the industry. This construction auditing CPE course focuses on the auditing of contractor estimates and the use of specialists to assist in this effort.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize why an audit strategy is needed, and what it controls.
Identify the issues associated with the environment in which a construction contractor operates.
Specify the risk assessment steps associated with the audit of a contractor.
Recognize when a contractor's internal audit function can be used by the auditor.
Identify how an auditor can reduce the audit risk for a construction contractor audit.
Specify the accounting controls that a construction contractor might use.
Recognize when a misstatement is considered to be material.
Identify the actions that can be taken to reduce detection risk.
Specify the events or conditions that indicate the presence of a risk of material misstatement.
Recognize the audit steps that are specifically associated with the audit of a construction contractor.
Identify the areas in which an auditor may choose to hire a specialist when auditing a construction contractor.
Specify who is responsible for fraud prevention and detection.
Major Topics
Areas of Audit Interest
Audit Planning
Understand the Contractor and Its Environment
Understanding Audit Risk
Understanding Contractor Controls
Materiality
Audit Procedures Specific to Contractors
Auditing Contractor Estimates
Developing Audit Documentation
