Construction accounting outlook – AICPA’s Audit Risk Alert raises red flags
Abstract: As contractors strive to reach year end with sound financial statements and a healthy bottom line, it helps to know from where threats might arise. One trustworthy source of pertinent information is the latest Audit Risk Alert, Real Estate and Construction Industry Developments, produced by the American Institute of Certified Public Accountants. This article delves into a number of red flags, all of which may lead to material misstatements in financial reporting. A sidebar looks at three important accounting developments for those who follow GAAP.