NAA2416. Auditing Revenue Efficiently and Effectively

Based on survey information, the revenue account has been involved in more than half the frauds uncovered over the years. Today, auditors are expected to assess revenues for existence and completeness, and for aspects of accuracy. Revenue recognition involving contracts with customers can be tricky, and when simply considering tolerable misstatement and the revenue account balance can lead to outrageous sample sizes. The chair of the task force that wrote the auditing chapter in the 2019 A&A guide for Revenue Recognition will lead you through the guide’s suggestions as well as other literature suggesting various approaches for achieving the desired level of assurance. In addition, the session will walk through a case study based on an actual inquiry to show how the various strategies can be used to audit the revenue account. Documentation is important to communicate what was done and what was considered and will be illustrated through the case study.

Learning Objectives:

• Identify the guidance in the A&A Revenue Recognition and other guides that help you design an efficient and effective approach to auditing revenues.
• Assess an illustration of applying guidance to a revenue account.
• Evaluate the various strategies and tools available for auditing the revenue account.