Construction Contractors: Auditing Considerations

Overview

Revenue recognition complicates contract auditing

Contract auditing has changed, somewhat, in light of the full implementation of FASB ASC 606, Revenue from Contracts with Customers. The AICPA is here to help with this focused contractor auditing course.

You will learn about contract auditing itself and what should raise red flags. You will also learn about:

• Audit risks of a contractor
• Audit planning and risk assessment
• Substantive auditing procedures; and,
• Internal controls

Highlights

Key Topics

• Revenue recognition
• Contracts
• Contractors
• FASB ASC 606
• Audit planning
• Audit risks
• Internal controls

Designed For

Who Will Benefit

Audit professionals with construction clients.

Objectives

Learning Outcomes

• Identify the riskiest areas when auditing the contracts of a contractor, and recall common audit procedures that must be performed to address these specific risks.
• Recall the considerations of the applying risk assessment procedures specifically in the audit of construction contractors.
• Recall the common three phases of contract review during audit planning.
• Recall the common audit procedures to test each of the five key components of the contractor's audit model.
• Identify specific controls that are effective in mitigating the significant risks present in the construction industry