Overview
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 special audit consideration. This module will discuss tips and techniques for auditing accounts payable, accrued expenses and common debt arrangements.
Major Topics:
- Typical audit procedures related to accounts payable and accrued expenses, including the search for unrecorded liabilities
- Evaluating accrued estimates
- Key controls related to liabilities
- Auditing debt, including compliance with covenants
- Determining the proper classification of debt
- Proper form of noncompliance waiver letters
- Impact of noncompliance on disclosures
Learning Objectives
- Discuss typical audit risks and special audit considerations
- Tailor the audit plan in response to assessed risk of material misstatement
- Evaluate results from a search for unrecorded liabilities
- Assess the propriety of accrued estimates
- Evaluate debt covenant compliance
Designed for:
Accountants responsible for auditing accounts payable, accrued expenses and debt
Prerequisite:
None
Advanced Preparation:
None