What it is
Lease audits fail on completeness and on judgment: a lease that is missing from the schedule, a renewal option that is reasonably certain, or a discount rate that nobody supported.
The program covers completeness of the population, classification against the five criteria in 842-10-25-2, measurement under 842-20-30, modifications and remeasurement, and the balance sheet and note disclosures.
When to use it
- Lessees with real estate, vehicle or equipment leases.
- First year of ASC 842 or after a significant lease change.
- When the lease population has not been reconciled to the ledger.
What’s inside
- Completeness procedures including embedded leases and ledger reconciliation
- Classification, term, variable payment and discount rate procedures
- Recomputation of the lease liability and right-of-use asset
- Modification, impairment, presentation and disclosure procedures
Standard cited
This template follows ASC 842 / AU-C 540. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 540 explained.
Questions
What discount rate does the program test?
The rate implicit in the lease when readily determinable, otherwise the incremental borrowing rate, or a risk-free rate if the entity is not a public business entity and has elected it (842-20-30-3).
Does it cover lessor accounting?
No. It is written for lessees. Lessor schedules are in the sales-type lease and straight-line rent templates.
Related templates
- ASC 842 Lease Classification Test Worksheet
- ASC 842 Lease Schedule (Lessee)
- Disclosure Checklist: Leases (ASC 842), Lessee and Lessor
- Lease Population Completeness Reconciliation
Last updated 11/06/2026. All free templates.