Accounting and Auditing for the Construction Industry
Overview
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The construction industry faces many unique issues and challenges to survive and remain profitable. These challenges include the specialized aspects of accounting and reporting for construction contracts, as well as estimating project costs and profitability. This course has been designed by Gene Ristaino, CPA/ABV/CFF, MT a recognized expert in the construction and real estate industry, to provide a more focused look at accounting, reporting and auditing for construction contractors.
You will analyze revenue recognition under ASC 606 – Revenue from Contracts with Customers (including comparing prior standards to the new FASB revenue standard under ASC 606) by exploring the underlying details and potential errors that are made using established concepts, including the shortfalls of the “cost to cost” method to determine “stage of completion” for a particular contract. You will discuss examples of techniques that will provide a more realistic audit approach for the contractor, including detailed auditing procedures for the various types of contracts.
Highlights
• Illustrative computations for revenue recognition
• Analysis of revenue recognition under ASC 606 and the impact on the construction industry.
• Application of “risk-based” audit model to contractors
• The “Lookback” analysis and the contractor’s estimating reliability
• Practical approach to auditing contracts completed and in progress
• Numerous computations and alternative approaches
Prerequisites
None
Designed For
Internal CPAs and CPAs currently servicing construction contractors, providing auditing and review services; you will be able to assist the company with evaluating job profitability, and presenting quality financial information to lenders and bonding companies.
Objectives
• To recognize and handle the basic accounting and auditing issues peculiar to the construction industry.
• Identify financial statement presentation and disclosure issues.
• Be aware of the specific bonding requirements and objectives.
• Explore the components of recognizing revenue in accordance with ASC 606 - Revenue from Contracts with Customers - using a risk-based perspective.
• Address the common pitfalls for error, and learn to apply the principles for all types of general and specialty contractors.
• Develop an audit approach for specific identified risks. Address the viability of project site visits.
Preparation
None
Leader(s):
Leader Bios
Eugene Ristaino, Retired, Inactive or Other
Gene Ristaino, CPA/ABV/CFF, MT
Gene Ristaino is the owner of Ristiano & Company and currently provides valuation services for private companies, along with accounting and auditing consultation and technical reviews for small and medium-sized CPA firms. His expertise includes consulting services for real estate developers and construction contractors in project costing and analysis, cost certification, claim support and documentation, expert witness, business valuation and job cost system implementation and improvement.
Gene is a national instructor for the American Institute of Certified Public Accountants (AICPA) and many state societies. He also lectures for many industry associations, and has authored numerous professional education programs, including several seminars and webcasts. Gene provides tailored CPA programs to accounting firms as requested.
Gene is a retired partner of Isdaner & Company, LLC (2016), a local firm of 65 people in the Philadelphia area, and was the director of accounting, auditing and quality control for the firm. Gene managed a diversified accounting practice (over 40 years of experience), which included accounting and auditing and technical engagement review. Gene concentrated in: real estate and construction; healthcare (nursing homes); the governmental and not-for-profit auditing sectors (yellow book), HUD regulations and the Single Audit Act; as well as substantial experience with manufacturing, transportation, retail and service organizations.
Gene has provided expert testimony and/or issued expert reports in numerous litigation support engagements involving real estate transactions, construction claims, family disputes and embezzlement cases. He has provided expert testimony in two Court appearances. He has also prepared construction contract claims, back charge reports, and damage reports in dispute litigation and arbitration.
Gene is "Accredited in Business Valuation" (ABV) and "Certified in Financial Forensics" (CFF) as designated by the American Institute of Certified Public Accountants (AICPA). Gene has also achieved his designation of "Accredited in Business Appraisal Review" (ABAR) from the National Association of Certified Valuators and Analysts (NACVA). Valuation and/or litigation engagements include construction contractors; leisure transportation; travel and tour agencies; manufacturing; real estate investment limited partnerships and LLCs; specialty restaurants; and family limited partnerships. Cases have included dissenting stockholder disputes; buy/sell transaction prices; estate and gift tax issues; and owner disputes. Gene has attended the Business Valuation Course, and the Fair Value Forum developed by the AICPA, the national Valuation Conference presented by the AICPA, as well as many national Forensic and Valuation Programs presented by the National Association of Certified Valuators and Analysts (NACVA).
Gene has a Masters in Taxation (MST) from Villanova University. His practice concentrated in corporate taxation for private companies, with a specialization in the real estate and construction industries.
Gene is a member of the American and Pennsylvania Institutes of Certified Public Accountants and previously served on the Peer Review and A&A Procedures committees for the Pennsylvania Institute of Certified Public Accountants. Gene was a team captain for the AICPA Peer Review Program, and has performed numerous peer reviews under the AICPA Standards.
Gene is a former adjunct professor of tax law for the Masters in Taxation Programs for Villanova University and Philadelphia University. He received his undergraduate BS degree in accounting from Drexel University, and earned his Masters in Taxation from Villanova University.
Non-Member Price $210.00
Member Price $190.00