Construction Contractors: Accounting, Auditing, and Tax

Overview

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 Codi“cation (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.

Highlights

• 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

Prerequisites

None

Designed For

• Auditors and accountants
• Financial professionals in the construction industry

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.