Auditing Revenue in Certain Industries -- AICPA Audit Guide

This guide summarizes new standards, guidance, and practices, and delivers "how-to" advice for handling audit and accounting issues related to revenue recognition, focusing on the computer software and high-technology manufacturing industries and related financial statement considerations.

Updated with conforming changes as of March 1, 2011, the guide includes relevant guidance contained in official standards and other technical sources, including the FASB Accounting Standards CodificationTM. This guide addresses complex revenue recognition issues, including:

·contract accounting, including construction-type and production-type contracts.
·indicators of improper revenue recognition.
·tangible products delivered with software components and nonsoftware components.
·units of accounting, allocation of arrangement consideration, and VSOE, TPE, and BESP
·auditing revenue assertions.
·auditing revenue transactions in the computer software industry and the high-technology manufacturing industries.

The guide offers practical guidance on recent developments in areas such as risk assessment, internal controls, and revenue recognition. All content is reviewed by subject matter experts and approved by the appropriate AICPA senior technical committee(s).

Recently issued technical guidance referenced in this edition of the guide includes FASB Accounting Standards Update (ASU) 2010-17, Revenue Recognition--Milestone Method (Topic 605): Milestone method of Revenue Recognition--a consensus of the FASB Emerging Issues Task Force.