Audit of Other Assets and Long-term Financing Chapter 13 Audit of Other Assets and Long-term Financing

Audit of Property, Plant, & Equipment First Time Audits Inherent Risks Evaluating Control Risk and Control Effectiveness Tests of Property Additions and Disposals Authorized Classified Valued Disposals

Audits of Property, Plant & Equipment (cont.) Audit Considerations for Capitalized Leases Asset Impairment Discontinued Operations Depreciation Expense and Accumulated Depreciation Natural Resources Disclosure Estimation of Reclamation Expense Research and Development Costs

Audits of Mergers & Acquisitions Overview of Accounting Issues Purchase Accounting Leveraged Buyouts (LBO) Audits of Mergers and Acquisitions Goodwill Audit problems with leveraged buyouts

Audits of Financing Activities Bonds: Major Considerations Value, premium, discount Interest Gains/Losses Restrictions

Bonds Bond Issuance and Amortization Schedule Periodic Payments and Interest Expense Disclosure Examination of Bond Indenture

Common Stock & Owner’s Equity Major Transactions affecting Stockholder’s Equity New stock issuance Purchase or sale of treasury stock Stock dividends or stock splits Donated capital Dividends Transfer of net income to retained earnings Prior-period adjustments

Common Stock & Owners Equity Valuation Disclosure

Audits of Financing Activities Accounts Included: Notes Payable Mortgages payable or contracts payable Special contracts Special bonds Preferred stock Stock options and warrants