Audit 205: Auditing Liabilities and Long-Term Debt Risks

Overview

Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure will discuss tips and techniques for auditing accounts payable, accrued expenses, and common long-term financing arrangements and related debt covenants. 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 more persuasive audit evidence. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Highlights

The major topics covered in this course include:

Typical audit procedures related to accounts payable and accrued expenses, including the search for unrecorded liabilities
Key controls related to liabilities
Auditing long-term debt, including compliance with covenants
Determining the proper classification of financing arrangements
Proper form of noncompliance waiver letters
Impact of noncompliance on disclosures

Prerequisites

None

Designed For

Accountants responsible for auditing accounts payable, accrued expenses and debt

Objectives

Upon completion of this course, you will be able to...

Identify typical audit risks and special audit considerations related to various liabilities
Tailor the audit plan in response to assessed risk of material misstatement, focusing on the assertions with typically higher risk
Evaluate results from a search for unrecorded liabilities and procedures to assess the propriety of accrued estimates
Evaluate the completeness, classification, and disclosure of financing arrangements - including debt covenant compliance