This course covers two of the more basic financial statement line items auditors are assigned: cash and cash equivalents and property, plant, and equipment (PP&E). These topics tend to be straightforward with less complexity and risk than other areas. In addition, there is little subjectivity involved outside of the entity directly building its own PP&E or using the assets under a lease agreement. Regardless, persuasive audit evidence from a third-party or direct inspection is generally available in both cases. Auditors should approach cash with the same professional skepticism as other areas, since there is always the risk of material misstatement. For PP&E, the auditor must understand internal controls that prevent and detect misstatements and auditing techniques responsive to the assessed risk and disclosure. This course discusses the risks and audit considerations necessary to successfully audit these two accounts.
This course features a live instructor and has been specifically designed for the NJCPA.
DESIGNED FOR
Professionals new to auditing cash and cash equivalents
BENEFITS
- Identify risks related to cash and cash equivalents and PP&E
- Identify sources of audit evidence associated with cash and cash equivalents & PPE
- Describe typical presentation and disclosure issues related to cash and PP&E
- Identify internal controls to prevent, detect, and correct misstatements in property and equipment
- Tailor an audit plan to respond to assessed risk of material misstatement
- Understand the key controls related to PP&E and cash and cash equivalents
HIGHLIGHTS
- Typical audit risks and special considerations related to cash and cash equivalents
- How to identify the risk of fraud related to cash and cash equivalents
- Designing a detailed audit plan, linking assessed risk to planned procedures
- Techniques used to perform the audit procedures and obtain evidence associated with auditing cash and cash equivalents and PP&E
- Case study and “test yourself” questions related to auditing cash and cash equivalents
- Internal control related to property, plant, and equipment and cash and cash equivalents
- Construction of assets including capitalizing interest
- Lease accounting requirements and disclosure of right-of-use assets
COURSE LEVEL
Basic
PREREQUISITES
None
ADVANCE PREPARATION
None