Revenue Recognition
Published November 06, 2012
For auditors in the high technology manufacturing and computer software industries, it is critical to understand the complex audit and accounting issues related to revenue recognition. AICPA publications provide information on recent developments, guidance, and illustrative examples for the common accounting and audit practices in the high technology manufacturing and computer software industries including
- contract accounting, including construction-type and production-type contracts.
- indicators of improper revenue recognition.
- auditing revenue assertions.
- tangible products delivered with software components and nonsoftware components.
- auditing revenue transactions in the computer software industry and the high-technology manufacturing industries.
Find comprehensive examples of
- inherent risk considerations related to revenue recognition.
- types of potential misstatements related to revenue recognition.
Available Publications
AICPA Audit Guide Auditing Revenue in Certain Industries
- This AICPA Audit Guide has been fully conformed to reflect the new standards resulting from the Clarity Project. This year’s edition of the guide fully incorporates the clarified auditing standards into all guide content, so that auditors can further their understanding of the clarified auditing standards, as well as begin updating their audit methodologies, resources, and tools prior to the clarified auditing standards’ effective date. Additionally, this approach gives auditors the opportunity to review and understand the changes made by their third-party audit methodology and resource providers, if applicable. The clarified auditing standards are effective for audits of financial statements for periods ending on or after December 15, 2012 (calendar year 2012 audits). Auditors should continue to use the 2011 edition of this guide until the clarified auditing standards become effective for the auditors’ engagements.