Audit 406: Auditing Revenue Recognition - Common Risks

Overview

Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations 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. Revenue recognition is presumed to be a significant risk for financial statement auditing purposes due to the increased risk of both fraud and error. Note: This course is recommended as a part of a 16-hour audit skills curriculum for supervisory or managerial auditors, while it is also appropriate for anyone who has responsibilities in auditing revenues. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

None

Objectives

After attending this presentation, you will be able to...

• Identify typical revenue recognition risks, including the impact of applying the newest revenue recognition model of Topic 606
• Recall how to link the assessed risk of material misstatement to a detailed audit plan for revenue recognized in a contract with a customer
• Recognize special revenue recognition considerations, such as contracts with financing elements, multiple distinct performance obligations, and more

Highlights

The major topics covered in this course include:

• 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