Assurance Flash Report - September 2014
On September 9, 2014 the PCAOB issued Staff Audit Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, (the “Alert”), to highlight certain PCAOB auditing requirements related to aspects of auditing revenue in which significant auditing deficiencies have been frequently observed by the PCAOB’s Inspections staff. The matters discussed in the Alert are applicable to both planning and performing audit procedures with respect to revenue. Since revenue is often significant to a company’s operating results, audit committees may find the matters discussed in the Alert of interest and might consider discussing with their auditors their approach to auditing revenue.