This course will provide an introduction to the construction industry, including how contractors operate, the risks they face, and accounting considerations unique to the industry. This course will also cover the relationship between construction contractors, CPAs, and sureties, and why that relationship matters in practice.

Learning Objectives:

• Identify key characteristics of the construction industry and the risks that make contractor reporting unique
• Recognize common contractor types, contract types, and project delivery methods
• Recall common causes of contractor failure and related warning signs
• Identify foundational contractor financial concepts, including estimates, retainage, and work in progress

This course covers accounting areas that commonly drive contractor financial reporting and engagement risk, including direct and indirect job costs, cost allocation methods, contract-related balance sheet accounts, and financial reporting and disclosure considerations.

Learning Objectives:

• Identify contractor-specific balance sheet and income statement areas that drive financial statement quality
• Recall cost classification and cost flow concepts relevant to contractor reporting
• Distinguish between contract-related asset and liability presentation and more routine financial statement balances
• Recognize the accounting areas that most often affect working capital, equity, disclosures, and financial statement quality

This session will provide an understanding of the individual components of the work-in-progress (WIP) schedule, how those components interact, and how the WIP schedule affects contractor financial reporting, job performance analysis, and overall risk assessment.

Learning Objectives:

• Identify the purpose, structure, and key components of a contractor WIP schedule
• Recognize how the WIP schedule ties to revenue, gross profit, contract balances, and the financial statements
• Distinguish between underbillings, overbillings, estimate changes, and other common WIP movement drivers
• Recognize common WIP red flags and the questions a CPA should ask

This course covers revenue recognition concepts specific to construction contractors, including contract types, performance obligations, contract estimates, and common areas of judgment such as change orders, claims, incentives, and liquidated damages.

Learning Objectives:

• Recall how contractor revenue differs from billing and why that distinction matters
• Identify the contract and performance obligation in common construction arrangements
• Recognize how change orders, claims, incentives, and liquidated damages can affect contract value and revenue recognition
• Recognize how contractors estimate and update revenue over the life of a job and where common risk areas arise

There are various ratios and analytical procedures that can be used to evaluate a contractor’s financial statements. Without an understanding of which measures matter most, key warning signs may be missed. This course discusses practical KPIs, trend analysis, and common indicators used by internal and external users to evaluate contractor performance and financial condition.

Learning Objectives:

• Identify the financial statement areas that matter most when analyzing a contractor
• Recognize how contractor balance sheets, income statements, and cash flows differ from other industries
• Distinguish between stronger and weaker indicators of working capital, equity, and contract-related balance quality
• Recognize practical KPIs and warning signs related to liquidity, profitability, leverage, and backlog

This course covers tax concepts most relevant to construction contractors, including long-term contract accounting methods, IRC Section 460 considerations, look-back interest, and other common tax planning and compliance issues that affect contractors.

Learning Objectives:

• Identify the core tax rules that govern long-term construction contracts
• Distinguish when IRC Section 460 applies and when exemptions may be available
• Recognize common tax accounting methods used by contractors and when method changes may arise
• Recall the purpose of look-back interest, Form 8697, and key multistate tax considerations

This session will cover engagements performed under preparation, compilation, and review standards (SSARS engagements) in a construction contractor environment. We will address the differences among engagements, procedures performed, reporting considerations, and common matters encountered in contractor engagements.

Learning Objectives:

• Distinguish between preparation, compilation, review, and audit services in a contractor environment
• Identify the construction-specific reporting areas that matter in lower-assurance engagements
• Recall the core procedures, documentation, and reporting requirements for each service
• Recognize how a review engagement differs from an audit of a contractor

This course will provide an introduction to construction company audits, including planning considerations, risk assessment, and auditing procedures specific to the construction industry. We will also discuss common contractor-specific audit focus areas, including contract estimates, work in progress, and financial statement reporting considerations.

Learning Objectives:

• Identify the construction-specific areas that drive audit risk
• Recognize how contract estimates, WIP, and job performance affect the audit
• Recall the planning considerations and procedures commonly used in contractor audits
• Distinguish how a construction audit differs from lower-assurance services