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

 

Learning Objectives
  • 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: August 26, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 3 - In-Charge/ Senior

  1. Fraud Trends - Applying Real-life Lessons to Small and Mid-Size Entities
  2. Reviewing Workpapers - Embracing Responsibilities for Quality Control
  3. Advanced Audit Planning Concepts - Ensuring an Effective and Efficient Audit
  4. Internal Controls to Mitigate Financial Reporting Risk - Designing Stronger Internal Controls for Small or Mid-Size Entities
  5. Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations
  6. Auditing Contingencies and Going Concern Uncertainty - Testing for Completeness and Proper Disclosure
  7. Audit Reporting Advanced Concepts - Understanding the Impact of General Audit Procedures on Disclosures and Audit Report Modifications
  8. Critical Traits of a Thinking Auditor - Stretching Experienced Auditors Beyond the Basics
  9. Client and Engagement Management - Managing the Black Holes that Erode Profitability
  10. Supervisor Skills - Coaching Staff to Stay on the Right Track
  11. Professional Ethical Considerations for CPAs
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
5 Reviews (14 ratings)

Reviews

5
Member's Profile
The mastery of Topic 606, a must for accountants. Tricky questions of "least likely" and "most likely".

5
Member's Profile
Jennifer explained the five step method in a very good way of thinking around these steps. Excellent job

5
Member's Profile
Cogently explained. The presenter took a tough topic and made it easy to understand. Thank you.

5
Anonymous Author
It offers great explanation and examples. It helped me a lot with the topic!

4
Anonymous Author
Transactions and events have been recorded in the correct accounting period.

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants responsible for auditing revenue recognition.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Learning Objectives for Auditing Revenue Recognition0:52
  Introduction8:07
  Common Audit procedures3:18
  New Revenue Recognition Model-Step 111:27
  New Revenue Recognition Model-Step 211:16
  New Revenue Recognition Model-Step 39:02
  New Revenue Recognition Model-Step 45:30
  New Revenue Recognition Model-Step 57:40
  New Revenue Recognition Model-Other Matters5:04
  Analytic procedures Related to Revenue Recognition6:27
  Fraud Considerations Related to Revenue Recognition16:32
  Case Study-Example Revenue Recognition Audit Issues7:52
CONTINUOUS PLAY
  Auditing Revenue Recognition1:39:55
SUPPORTING MATERIAL
  Slides: Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit ConsiderationsPDF
  Auditing Revenue Recognition - Grasping the Higher Risks and Special Audit Considerations Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam