Sample interview questions: Describe your experience with auditing revenue from contracts with customers (ASC 606).
Sample answer:
- Conducted risk assessments to identify potential areas of misstatement in revenue recognition.
- Evaluated the design and operating effectiveness of internal controls over revenue recognition processes.
- Performed substantive analytical procedures to identify unusual or unexpected trends in revenue.
- Tested the accuracy and completeness of revenue transactions by examining supporting documentation, such as contracts, invoices, and shipping documents.
- Reconciled revenue recognized with amounts billed to customers and recorded as accounts receivable.
- Assessed the appropriateness of revenue recognition methods used by the company, including the allocation of revenue over the life of a contract and the recognition of revenue from billings in advance of delivery.
- Reviewed disclosures related to revenue recognition in the company’s fina… Read full answer