Designed for practitioners working with construction contractors, this basic-level course provides the information needed to help clients in this industry. Participants will examine topics that include the predominant types of construction contractors and the work they typically perform; accounting guidelines in accordance with FASB *Accounting Standards Codification* (ASC) 606, *Revenue from Contracts with Customers*, and FASB Accounting Standards Update No. 2016-02, *Leases (Topic 842)*; and audit risks, planning considerations, and procedures. Additionally, they?ll learn about the types of surety bonds and financial benchmarks that might be analyzed in a contractor's financial statements.
Learning Objectives
When you complete this course, you will be able to:
- Recall the predominant types of construction contractors and the work they typically perform.
- Identify the common significant steps within the overall construction process and the select characteristics that are unique to the construction industry and that have accounting, audit, tax, or consulting consequences.
- Recall the details in the accounting for construction contracts and leases.
- Identify the unique characteristics, disclosures, and supplementary information common to contractor financial statements.
- Recall the main reasons for and types of surety bonds, and the various financial benchmarks a surety or surety agent might analyze in a contractor’s financial statements to determine the amount of the contractor’s surety credit.
- Identify the riskiest areas when auditing the contracts of a contractor and common audit procedures that must be performed to address these specific risks.
- Recall the considerations of the applying risk assessment procedures specifically in the audit of construction contractors.
- Identify the five key components of the contractor’s audit model and the common audit procedures to test each of the five key components.
- Identify specific controls that are effective in mitigating the significant risks present in the construction industry.
Major Topics
- The nature of the construction industry
- FASB *Accounting Standards Codification*® (ASC) 606, *Revenue from Contracts with Customers*
- FASB Accounting Standards Update (ASU) No. 2016-02, *Leases (Topic 842)*
- Construction cost allocation
- Financial statements
- Working with a surety
- Audit risks, planning and procedures
- Controls
