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Overview

3.0 Credits

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.

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

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

Designed For

Accountants responsible for auditing accounts payable, accrued expenses and debt