Programme Objective
To equip participants with a competent understanding of the audit of contracts with performance obligations satisfied over time, with special emphasis on construction contracts.
 
This course will illustrate the application of FRS 115 and the general principles to guide the auditor in determining the validity of the amount attributed to long-term/construction contracts. The course will also discuss the key assertions with respect to long-term/construction contracts and how to direct audit effort to address these assertions.
 
(Note: This course does not cover the detailed aspects of accounting for construction contracts, which is separately covered in A240 - FRS 115: Revenue from Contracts with Customers - Construction Contracts)

Programme Outline

• Revise the relevant accounting standard and general principles in determining the validity of the amount attributed to long-term/construction contracts.
• Appraise the inherent risks affecting long-term/construction contracts and explain the controls expected of management and the detection procedures carried out by the auditor to keep risk to acceptable levels.
• Evaluate key management’s assertions in respect of long-term/construction contracts and plan the nature, extent and timing of substantive procedures to address these assertions.
• Identify significant areas of management’s judgment to help to direct audit effort to critical areas.
• Formulate audit procedures to test the amounts attributed to long-term/construction contracts.

Training Methodology
Lecture style, with Exercises/Case Studies
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

An Intermediate to Advanced level programme intended for auditors. Those who like to gain more understanding in the audit of long-term/construction contracts are welcome to attend (Note: Participants are required to have prior knowledge of accounting for construction contracts with performance obligations satisfied over time under FRS 115)

Programme Facilitator(s)