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 audit CPE 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.
Learning Objectives
Upon completion of this course, participants 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
Explain key controls related to property, plant, and equipment
Recall and apply lease accounting requirements, including the impact of Topic 842 lease accounting standard changes on both lessees and lessors
