Complex Accounting and Auditing Issues for the Construction Industry

Description

As the economy has forced contractors to move away from their specialties to compete in the general construction environment, risks and obstacles to project profitability have grown. Controlling and managing these risks is critical if construction companies are to survive. In this course, you'll recognize and understand these increased risks, as well as identify accounting techniques and auditing procedures to deal with them. Plus, learn how to assist contractors with evaluating their estimating capabilities, develop a more realistic revenue recognition model, evaluate job profitability and recognize cost overruns on projects in progress.

Highlights

• FASB revenue recognition standard and its anticipated impact on the construction industry.
• Impact of related parties on financial statement presentation and disclosures.
• Application of risk-based audit model to specific risk areas of long-term-contracts.
• Internal control considerations and audit approach.
• Evaluation and analysis of contractor’s estimating process.

Objectives

• Recognize and account for risks related to aggressive bidding and tight estimates on revenue recognition.
• Identify industry specific complex accounting and reporting issues, including related parties and variable interest entities and asset impairment.
• Determine industry specific financial reporting frameworks and their impact on financial statement presentation and disclosure.
• Recall the estimating function, including responsibilities for estimate components and developing procedures for evaluating related internal controls.
• Determine how to assist management with the estimating process by eliminating procedural errors and other mechanical oversights.
• Recognize related party transactions and their impact on revenue recognition, financial reporting and profitability.
• Identify specialized audit procedures for unusual and complex identified risks.

Designed For

Internal and external CPAs who provide audit, review and consulting services to construction contractors.