Revenue (1)

Question 1

What does audit of revenue require?

Answer 1

An aweareness of IFRS 15 Revenue from Contracts with Customers

Question 2

Step 1 of auditing revenue?

Answer 2

Identify the contract(s) with a customer

Question 3

Step 2 of auditing revenue?

Answer 3

Identify the performance obligations in the contract

Question 4

Step 3 of auditing revenue?

Answer 4

Determine the transaction price

Question 5

Step 4 of auditing revenue?

Answer 5

Allocate the transaction price to performance obligations in the contract

Question 6

Step 5 of auditing revenue?

Answer 6

Recognise revenue when the entity satisfies a performance obligation

Question 7

What are key assertions for revenue?

Answer 7

Occurrence
Completeness
Accuracy

Question 8

Example of occurrence

Answer 8

Auditors are seeking to obtain evidence that revenue exists and pertains to the entity

Question 9

Example of completeness and accuracy

Answer 9

Completely and accurately recorded

Question 10

What is alsi important to test?

Answer 10

That revenue is reocrded in the correct period (cut-off)