Auditing PP&E, Including Leases Under Topic 842 – Digesting The Risks Of Improper Treatment Of Tangible Long-lived Assets

Learning Objectives

• To discover and discuss typical audit risks for tangible long-lived assets
• To identify and explore special audit considerations for tangible long-lived assets.
• To recognize and tailor a detailed audit plan to respond to the assessed risk of material misstatement related to fixed assets and leases.
• To explore and explain key controls related to property, plant, and equipment.
• To discover, describe, and apply lease accounting requirements, including the impact of Topic 842 lease accounting standard changes on both lessees and lessors.

Course Description

In virtually, all audits property, plant, and equipment (PP&E) are present, at least to some extent. Under special circumstances such as the right of use under a lease agreement complexities arise. This CPE webinar is going to address the risk of PP&E, internal controls that detect as well as prevent misstatement in PP&E, and auditing techniques responsive to the assessed risk and disclosures.

From the risk perspective, property, plant, and equipment can range from a low-risk to a high-risk audit area, depending on the nature of transactions and events engaged by the reporting entity. Construction, capitalized interest, and complex leasing arrangements tend to result in a higher risk of material misstatement.  This webinar is going to discuss the typical audit risks. It will also discuss the special audit considerations that the auditors should implement.

The speaker is also going to discuss a detailed audit plan that is responsive to assessed material misstatements for fixed assets as well as leases. It will cover in detail the key controls that the auditor may implement to ensure substantial assurance. The webinar will also discuss lease accounting in detail from the perspective of the impacts of Topic 842. It 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.

The Online CPE webinar for CPAs covers the following Key Topics:

• 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

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Overview

• PP&E Defined

  2 mins
• Where is the best place to shop for a lightsaber?

  17 mins
• Depreciation of Significant Components

  26 mins
• Segregation of Duties

  43 mins
• Identifying Non-Lease Components

  64 mins
• Key Points for Lessee - Lease Modifications

  95 mins