Revenue remains one of the most significant audit risks — and a recurring source of ASIC inspection findings, restatements, and enforcement actions.
Under AASB/ IFRS 15 Revenue from Contracts with Customers, regulators continue to uncover gaps in how auditors assess risks, apply substantive analytical procedures, test controls, and document their work.
Frequent shortcomings include weak identification of performance obligations, inadequate testing of variable consideration, poor analysis of contract modifications, and insufficient evidence to support revenue disclosures.
This session will:
- Identify audit risks arising from the application of AASB/IFRS 15
- Examine ASIC-inspired corporate revenue restatements, audit shortcomings, and enforcement actions
- Explain the key auditing standards that guide the audit of revenue
- Work through the key audit procedures that need to be applied to the five step revenue recognition process, and
- Identify those areas where audit procedures have been ineffective – contract understanding, contract changes, variable consideration, principal vs agent, point in time vs over time.
