What it is
A continuing care community takes large entrance fees up front and promises care for years. Most of the audit risk sits in how those fees are deferred and amortized, how much is owed back, and whether the obligation to provide future services is covered. This program organizes those procedures with objectives, assertions and sample-size guidance.
It is built as a five-tab workbook: instructions, an overview with completion tracking, a risk assessment, the numbered procedures with a result dropdown, and tie-outs to the trial balance. General procedures that every audit needs are added at the end.
When to use it
- At planning for a senior living or CCRC engagement, to scope entrance fee and resident fund testing.
- During fieldwork, to track each procedure with initials, date and result.
- At review, to see open items and exceptions by section.
What’s inside
- Entrance fees and deferred revenue procedures, including refundable fee testing
- Obligation to provide future services with actuary use
- Monthly fee and health care revenue by payor, with cutoff
- Resident trust funds, trustee holdings and covenant recomputation
- Risk assessment tab and tie-outs to the trial balance
Standard cited
This template follows ASC 954 / ASC 606. 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.
Questions
Does this cover not-for-profit and for-profit operators?
Yes. The steps on net assets and donor restrictions apply to not-for-profit operators. Delete them for a for-profit operator and keep the rest.
Who sets the amortization period for nonrefundable entrance fees?
Management does, based on expected resident tenure. The program has the auditor test that period against the entity’s own departure experience and the source of its life expectancy assumptions.
Does it set sample sizes?
No. It suggests how to select items and leaves sizes to your firm’s sampling policy under AU-C 530.
Related templates
- Senior Living Entrance Fee Amortization Schedule
- Audit Program: Nonprofit Organization
- Audit Program: Medical Practice
- Audit Planning Memo (AU-C 300)
Last updated 11/05/2026. All free templates.