Right-of-Use Assets Working Paper for IFRS 16 Audit

Key benefits & value for audit teams

The Right-of-Use assets working paper turns IFRS 16 complexity into a repeatable audit process. Instead of building testing tools from scratch, audit execution teams get:

• Time savings: Ready-made programs and worksheets reduce fieldwork setup time by hours per lease portfolio.
• Audit quality: Documentation prompts and cross-references to ISA and SOCPA requirements increase completeness and reduce reviewer queries.
• Consistency: Standardised tests and working paper layout ensure all engagements use the same approach for ROU valuation and disclosure testing.
• Transparency: Clear audit trail from lease contract review to calculation outputs and disclosure verification for file review and external inspection.

Keywords included: Right-of-Use assets working paper, IFRS 16 ROU audit template, lease contracts review working paper, right-of-use assets audit file.

Use cases & real-life scenarios

Large lessee with multiple lease portfolios

For engagements where clients present hundreds of lease contracts across property, plant and equipment and vehicles, use the template to classify, sample, and calculate ROU values, linking each sampled lease to its contract and tested journal entries.

Sample testing for regional audit teams

Regional teams can apply the included sampling guidance and materiality pointers to select a representative lease sample and document the risk-based procedures, reducing variation across offices.

Review of lease modifications and reassessments

The working paper contains flows for practical scenarios: lease term reassessment, changes in lease payments, indexation clauses, and incremental borrowing rate recalculation—each with audit steps and evidence checklists.

Who is this product for?

Designed specifically for:

• Audit and accounting firms applying IFRS/ISA frameworks.
• Legal auditors and statutory auditors preparing audit files under SOCPA.
• Internal audit teams performing lease compliance reviews.
• Senior managers and review partners who want consistent, reviewer-friendly working papers.

How to choose the right format

The working paper is supplied in editable Excel and Word formats. Choose based on your practice needs:

• Excel-first: If you need prebuilt calculations, amortisation schedules, and automated remeasurement scenarios, choose the Excel package.
• Word-first: If your firm prefers narrative testing programs and evidence indexes, choose the Word templates (includes tables for embedding calculation snapshots).
• Combined: For full coverage, use both: Excel for calculations and Word for the testing narrative and final reviewer notes.

Quick comparison with typical alternatives

Common alternatives and why this working paper is often the better option:

• Build in-house: Time-consuming, inconsistent across teams, and high maintenance cost—our template is pre-mapped to ISA & SOCPA.
• Generic checklists: May miss IFRS 16 specifics (e.g., lease term reassessment, variable payments). This product includes IFRS 16 ROU audit template specifics.
• One-off consultants: Expensive and non-repeatable; our template scales across engagements and teams.

Best practices & tips to get maximum value

• Start with the lease contracts review working paper to identify embedded leases and classification triggers before running calculations.
• Use the sample selection guidance to document a defensible sampling rationale tied to risk assessment (ISA 530 considerations).
• Cross-reference each calculation to source documents (lease agreement, payment records, policy on discount rates) to create a clear audit trail.
• Keep the template updated with your firm’s incremental borrowing rate policy—document assumptions and sensitivity testing for significant leases.

Common mistakes when preparing an ROU audit file — and how to avoid them

• Missing lease amendments: Ensure you scan for contract modifications and use the remeasurement flow in the template.
• Poor linkage to evidence: Always link calculation rows to contract clauses or CFO confirmations—our working paper enforces this linkage.
• Under-documenting judgments: Use the built-in judgment log to describe management’s assumptions and auditor’s evaluation.

Product specifications

• Product name: Right-of-Use Assets Working Paper for IFRS 16 Audit
• Formats: Editable Excel (.xlsx) and Word (.docx) — packaged together
• Contents: Lease identification checklist, calculation worksheets (initial recognition, subsequent measurement, amortisation, impairment), sample testing program, disclosure checklist mapped to IFRS 16 paragraphs, reviewer checklist
• Compatibility: Microsoft Office 2016+ / Office 365 or compatible spreadsheet editors
• Delivery: Instant digital download after purchase
• Notes: Fully editable; includes user guidance and example entries

FAQ