Audit Staff Essentials - New Staff Practical Application: Auditing Property, Plant, and Equipment, and Leases

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Property, plant, and equipment complexities

Although the accounting for property, plant, and equipment can seem straightforward, this area may present unusual or complex transactions. You'll learn about potential complications, such as:

• Exchanges
• Capitalized interest
• Sale leasebacks

Impaired assets

Events or changes in circumstances can indicate an asset is impaired. You'll gain insight into how to look for possible signs of impairment by exploring topics that include:

• Scrutinizing the underlying documentation
• Analyzing whether the costs should be capitalized or expensed
• Communicating with other audit team members to see what they observed in their audit areas

Updated guidance for leases

You can familiarize yourself with up-to-date guidance for the treatment of leases, including:

• Accounting for leases using the most recent lease standard
• Using common auditing procedures for leases
• Incorporating audit data analytics in the audit of property, plant, and equipment

Applying your new knowledge

Interactive exercises and case studies allow you to apply effective and efficient procedures when auditing fixed assets.

Who Will Benefit

• Recently onboarded staff
• First-year staff
• Firms that want consistent training and level setting

Key Topics

• Relevant professional standards related to auditing property, plant, and equipment
• Audit objectives and assertions for property, plant, and equipment
• Risk assessment for property, plant, and equipment
• Lease audit and accounting
• Using audit data analytics

Learning Objectives

• Recall the audit objectives and related assertions in the property, plant, and equipment (PPE) area.
• Identify the basic audit procedures over the PPE process, including those surrounding risk and fraud, and apply those procedures to a commonly encountered audit situation.
• Recall concepts related to and procedures used in auditing leases.
• Recognize the potential of audit data analytics in PPE audit procedures.