Self-Study
Surgent's Auditing A/P, Accrued Expenses, and Debt (Audit Skills Training - Level 2) (A2M5)
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Wednesday, January 29, 2020 – Friday, April 30, 2021
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3CREDITSAuditing
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
Highlights
- 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