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Auditing Contracts: From Planning to Reporting

Course Description

Print-friendly Course Description and Outline

If you are interested in planning an effective audit of various contracts within your organization, this course is for you. Participants will be exposed to the four legal requirements necessary to form a contract, then expand to advanced areas of contract law and auditing. This course is appropriate for auditors (staff level to CAE) and non-auditors who wish to know more about contract law and how to audit contracts.

The course was designed by one of the few licensed attorneys who is also a CIA and noted lecturer. The class will start with contract basics and expand into complex areas of contract provisions. This session includes an exciting mix of lecture, group discussion, breakout sessions, and complex problem solving.

Course Duration: 2 day(s)
CPEs Available: 16
Knowledge Level: Intermediate
Field of Study: Specialized Knowledge

Basic understanding of contracts and contracting process.

Advance Preparation: 


Delivery Method: On-site Training (Group-Live); Seminar (Group-Live)

​Sources of Contract Law

  • List the various sources of contract law.
  • Describe the four areas of contract information that differ among jurisdictions. Discuss how contracts reduce organizational risk.
  • Based on given contract scenarios, identify the audit-related purpose(s) of the contracts and their role in reducing organizational risk.

Contract Components

  • List the four components of a contract.
  • Discuss what constitutes offer and acceptance of a contract.
  • Determine whether a contract exists, with case examples.
  • Define consideration as a component of contracts.
  • Identify illegal provisions which render contracts void.
  • Given scenarios, identify which of the four components of a contract are compromised.

Planning the Audit of Contracts

  • Discuss what to consider when planning an audit of contracts.
  • Describe the importance of a walkthrough of the various steps of contracting, from inception to performance.
  • Match various scenarios with the respective approach to flowcharting the process.
  • Explain why integration of contract valuation into the planning process is important.
  • Given a set of facts, perform a risk assessment and plan a walkthrough.

Selecting Audit Samples of Contracts

  • Discuss the sections of financial statements to be considered when selecting a representative sample.
  • Describe sampling strategies and techniques.
  • Given examples, determine whether contract risks are “very low,” “low,” “moderate,” “high,” or “very high.”
  • Identify risks in limiting audit scope.
  • Identify other sources of information regarding deficiencies with contracts.

Performing Control and Substantive Tests

  • Discuss critical controls.
  • Given a contract type, identify key controls.
  • Compare and contrast general substantive tests and contract specific substantive tests.
  • Given a contract type, identify key substantive tests.
  • Discuss issues of materiality when performing audit steps.
  • Given scenarios, state the control tests and substantive tests that should be performed.
  • Combining test of controls with substantive tests.

High Impact Reporting

  • Discuss the importance of ranking and reporting findings when evaluating contracts.

​Most courses can be delivered through on-site training. You might be surprised that the organization leading the profession is just as committed to the delivery of affordable training.

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