Audit procedures for leases consist primarily of examining lease documents to determine the substance of the lease transaction and the proper accounting treatment.

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Audit procedures for leases typically involve reviewing lease agreements to determine the nature of the lease (e.g. operating lease vs finance lease) and ensuring that the appropriate lease accounting standards have been applied (e.g. ASC 842 or IFRS 16). This may also involve testing the completeness and accuracy of lease data, such as lease payments, lease term, and lease classification.

Audit Procedures for Leases Consist Primarily of Examining Lease Documents