New Revenue Recognition Rules: ASU 2014-09

  • Credits: 2
  • Format: Self-Study eBook
  • Field of Study: Auditing
  • Author/Speaker: Lanford Publishing
Available Formats:   
Advanced Preparation: None
Experience Level: Overview
Program Prerequisites: General understanding of U.S. auditing standards
Course ID: LP-315
Published Date: © April 2021
COURSE DESCRIPTION

On May 28, 2014, the Financial Accounting Standards Board (FASB) released its widely anticipated revenue standard, Accounting Standards Update 2014-09, Revenue from Contracts with Customers. The issuance of final documents was the result of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting with the establishment of common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS).

This course will consider the significance of the guidance issued, review the core principle related to the recognition of revenue, identify the specific steps that should be applied to recognize revenue, and consider the actions needed in order to be prepared to implement the revenue guidance by the effective date of the standard.

Topics include:
  • Overview of SAS No. 134-141
  • SAS No. 134: Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements
  • SAS No. 135: Omnibus Statement on Auditing Standards—2019
  • SAS No. 136: Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA
  • SAS No. 137: The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports
  • SAS No. 138: Amendments to the Description of the Concept of Materiality
  • SAS No. 139: Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes from SAS No. 134
  • SAS No. 140: Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137
  • SAS No. 141: Amendment to the Effective Dates of SAS Nos. 134–140

Learning Objectives:

After reading the course material, you will be able to:

  • Identify the types of audit reports that can be issued under the new AU-C 700A
  • Identify the definition of a written report
  • Recognize an acceptable title for an auditor’s report
  • Recognize the order in which certain sections of the new auditor’s report should be presented in AU-C 700A
  • Recall how an auditor should report when conducting an audit in accordance with PCAOB standards
  • Recognize the requirements and limitations with respect to communicating on key audit matters in accordance with the new ASU-C 701
  • Identify examples of acceptable and unacceptable headings to use in modified reports under the new ASU-C 705A
  • Recognize the order in which certain sections of a modified opinion should be presented in the new auditor’s report in AU-C 705A
  • Recognize examples of modified opinions as defined in AU-C 705A
  • Identify examples of situations in which an auditor must or may include an emphasis-of-matter or other-matter paragraph as required by new AU-C 706A
  • Recall examples of fraud risk factors expanded by SAS No. 135
  • Identify expanded procedures auditors of ERISA-plan financial statements must perform in newly issued SAS No. 136, including a review of the draft Form 5500
  • Identify the new ERISA Section 103(a)(3)(C) audit in SAS No. 136
  • Recognize the scope of the terms “other information” and “annual report” as used in the newly issued SAS No. 137 pertaining to auditing and reporting other information, and
  • Recall how an auditor should label other information in the auditor’s report.
  • Recognize the new definition of materiality found in SAS No. 138
  • Identify certain paragraphs in the new auditor’s report on a special purpose framework.
  • Recognize how an auditor should present required supplementary information under SAS No. 140’s amendment of AU-C 730

Who Should Attend:
  • All Certified Public Accountants (CPAs)

Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA