Auditing Construction Contractors: Avoiding Common GAAS and GAAP Deficiencies

This webinar will review the unique aspects of auditing large and small construction companies. Our panel of construction industry experts will discuss revenue and cost recognition compliance, financial statement presentation and disclosures, and common GAAS and GAAP deficiencies found in these audits.

Unlike other industries, construction terminology alone can be overwhelming. Change orders, claims, WIP or CIP (work in process or contracts in progress), retainage, job costs, billings in excess of costs, and costs in excess of billings must be understood, reported, and disclosed. Accounting for and auditing revenue recognition methods, including the percentage of completion (recognizing revenue over time) or completed contract (recognizing revenue at a point in time), can be challenging. Accounting for and auditing cost recognition for bond, mobilization, and uninstalled material costs, including indirect costs, has its unique challenges, as does auditing a contractor's job cost postings. 

Most importantly, understanding the types of contracts and key relevant accounting and auditing matters is one of the most important steps in the process. The unique nature of construction companies requires specific considerations to satisfy audit standards, including the 5-step model for revenue recognition under ASC 606 and risk assessments that satisfy SAS 145 for construction audits.   

Listen as our panel of construction experts explains how to meet GAAS and GAAP guidelines while efficiently completing audit engagements for construction contractors.