Somewhat surprisingly, there is no dedicated standard on auditing revenue. The general body of auditing standards is applied. This can mean that some of the specific requirements of determining compliance with AASB 15 and obtaining sufficient appropriate audit evidence have not been adequately addressed.
Recent ASIC audit inspections have found that the audit of revenue was one below-par area. The commission has announced that it will begin informing directors about negative findings in an effort to improve quality.
There is room for improvement.
This session will:
- Describe the shortcomings that ASIC and others have identified in auditing revenue
- Briefly review the auditing standards that need consideration, and
- Outline the specific audit procedures that can be applied to address more effectively the specific requirements of AASB 15 and ASIC’s concerns.
