Revenue recognition is presumed to be a significant risk requiring special audit consideration for financial statement auditing purposes. This module will provide tips and techniques for obtaining sufficient and appropriate audit evidence to support conclusions related to accounting for revenues obtained from contracts with customers.
Major Topics:
- Generally accepted accounting principles related to sales, including the newest revenue recognition model of Topic 606
- Common revenue recognition fraud schemes and potential audit responses
- Audit responses to significant risks requiring special audit consideration related to revenue recognition
Prerequisites
No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for auditing revenue recognition.
Learning Objective
- Discuss typical revenue recognition risks, including the impact of applying the newest revenue recognition model of Topic 606.
- Explain how to link the assessed risk of material misstatement to a detailed audit plan for revenue recognized in a contract with a customer.
- Describe special revenue recognition considerations, such as contracts with financing elements, multiple distinct performance obligations, and more.
Last updated/reviewed: March 10, 2024
(0) Reviews
(30 rating)Lesson Questions and Answers0 Questions
There are no questions.
Answers to Frequently Asked Questions (FAQs)
Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Learning Objectives for Auditing Revenue Recognition 0:52
- Introduction 8:07
- Common Audit procedures 3:18
- New Revenue Recognition Model-Step 1 11:27
- New Revenue Recognition Model-Step 2 11:16
- New Revenue Recognition Model-Step 3 9:02
- New Revenue Recognition Model-Step 4 5:30
- New Revenue Recognition Model-Step 5 7:40
- New Revenue Recognition Model-Other Matters 5:04
- Analytic procedures Related to Revenue Recognition 6:27
- Fraud Considerations Related to Revenue Recognition 16:32
- Case Study-Example Revenue Recognition Audit Issues 7:52
CONTINUOUS PLAY
- Auditing Revenue Recognition 1:39:55
SUPPORTING MATERIAL
- Slides: Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations PDF
- Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
Ask the instructor a question about this lesson