Construction Contractors: Auditing Considerations

Overview

Overcoming the challenges of auditing contracts

Construction makes up a large portion of the economy. As such, a growing number of accounting and finance professionals may need to be aware of the accounting and auditing guidance for the construction industry.

You’ll delve into the audit considerations related to construction contracts, covering various topics, including:

Audit planning and substantive auditing procedures

The core knowledge necessary to succeed

Key issues affecting construction auditing, including auditing under the new revenue recognition and leases guidance

Audit risks and risk assessment

Highlights

Auditing contractor accounting and revenue from contracts with customers

Planning and risk assessment for construction contractors

Key controls

Substantive procedures for long-term contractors

Prerequisites

None

Designed For

Practitioners, accountants, and financial professionals in the construction industry

Objectives

Identify key risk areas in contractor contracts and the audit procedures used to address them.
Recall the considerations of applying risk assessment procedures specifically in the audit of construction contractors.
Recall the common three phases of contract review during audit planning.
Identify other preliminary procedures and areas of concern common to an audit of a construction contractor.
Identify the five key components of the contractor's audit model.
Recall the common audit procedures to test each of the five key components of the contractor's audit model.
Identify specific controls that are effective in mitigating the significant risks present in the construction industry.