Auditing Property, Plant, & Equipment 

CPE Credit: 2 hours

This course provides auditors with a practical framework for auditing property, plant, and equipment (PP&E), a significant balance sheet category that presents unique risks related to capitalization, valuation, impairment, and disclosure. Participants will learn how to assess inherent and control risks, evaluate internal controls over acquisitions and disposals, and design substantive procedures that address risks of material misstatement. Key topics include auditing additions, retirements, and repairs and maintenance; evaluating capitalization policies; testing depreciation and useful lives; and considering impairment indicators. Real-world examples will highlight fraud risks (such as improper capitalization of expenses), common audit pitfalls, and best practices for documentation. By the end of this program, participants will be able to perform efficient, effective, and standards-compliant audits of PP&E, ensuring accurate financial reporting and enhanced audit quality. 

Topics Covered:
• Audit Standards
• Audit Procedures
• Accounting for Property, Plant & Equipment

Learning Objectives:
• Understand the accounting and disclosure requirements for PP&E under U.S. GAAP.
• Identify risks of material misstatement, including improper capitalization, impairment, and incomplete disposals.
• Evaluate internal controls over PP&E acquisitions, disposals, and depreciation.
• Design and perform substantive procedures to test additions, retirements, depreciation, and impairment.
• Recognize fraud risks and red flags associated with PP&E accounting.
• Document audit procedures and conclusions in compliance with professional standards.