How to Audit under the New Leasing Standard (Currently Unavailable)

Author: Salvatore Collemi

The revised effective date for private companies’ adoption of the new leasing standard (ASC Topic 842, Leases) is now January 1, 2022! Question: Will you be prepared to properly audit such transactions? This course is designed to provide external auditors with practical and insightful perspectives on how to audit transactions under the Financial Accounting Standards Board’s (FASB) new leasing standard. You'll learn the new accounting and financial reporting requirements and how to substantively and analytically test them in accordance with Professional Standards.

Publication Date: October 2022

Designed For
Practitioners in public practice who conduct audits of privately-held organizations who have adopted ASC Topic 842.

Topics Covered

• FASB ASC Topic 842
• Organization of FASB ASC Topic 842
• What Is a Lease?
• Does a Contract Contain a Lease?
• New Leasing Standard
• Lessee Accounting
• New Lessee Lease Classification
• The New Capital Lease — Finance Lease!
• New Leasing Standard
• The New Operating Lease
• Lease vs. NonLease Components
• Lessee Lease Recognition and Measurement
• New Leasing Standard
• Lease Modifications
• Lease Modifications - Lessees
• Presentation, Disclosures & Transition Requirements
• Sample Journal Entries Existing Operating Lease with Practical Expedients Elected
• Sample Journal Entries Initial Measurement of ROU Asset and Lease Liability under ASC Topic 842
• Inquiry With Management Regarding Transition
• Auditing Under the New Leasing Standard

Learning Objectives

• Recognize the FASB's new leasing standard requirements
• Recognize how to describe and discuss the new accounting and reporting requirements of leases
• Identify which audit procedures to perform
• Recognize how to properly audit the transition requirements and initial adoption of the new standard
• Identify approximately what amount of right-of-use assets and lease payment liabilities will be added on by U.S. companies' balance sheets on account of the new lease standard
• Identify the ASU issued by the FASB on June 2, 2020 which amended the effective date of the new leasing standard
• Identify a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration
• Identify they type of costs that are commissions or payments made to an existing tenant to terminate the lease

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
General knowledge of ASC Topic 842 and AICPA Professional Standards.

Advance Preparation
None