Audit of FRS 115 Revenue from Contracts with Customers: A Practical Approach

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Description

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FRS 115 Revenue from Contracts with Customers is a relatively new standard, and requires professional judgments, estimates, and disclosures that warrant close auditor attention to some of the most important metrics that their clients report.

The pandemic makes auditing revenue recognition even more demanding and difficult as companies’ operations, processes, and controls have changed in many cases.

The challenges in auditing revenue are beginning to surface gradually. Poor auditing of revenue is a focal point for those inspecting and monitoring audit quality across firms of all sizes. This timely and practical workshop aims to equip Audit Professionals with the knowledge on an effective audit of an entity’s revenue accounting.

Programme Outline

• Obtain an understanding how the entity earn revenue
• Review entity’s contract with customers to:
• Identify performance obligations
• Evaluate how performance obligations are satisfied
• Evaluate how revenue is measured
• Obtain an understanding how the entity’s accounting system record revenue
• Evaluate whether the entity’s system of recording revenue is consistent with the requirements of FRS 115 – Revenue from Contracts with Customers
• Assess audit risk in revenue accounting and design specific audit procedures in response to the audit risk
• Performing analytical procedures on revenue
• Performing test of details:
• Completeness test
• Occurrence test
• Cut-off test
• Accuracy test
• Evaluating results from samples test of details
• Auditing variable consideration:
• Sales return
• Volume rebate
• Performance bonus or late penalty

Cases will be used to illustrate the above:

• A trading company;
• A private education institute;
• A service company

This workshop qualifies for 7 CPE hours in Auditing Standards, Pronouncements and Methodology (Category 3).

Target Audience

Audit assistants and audit senior carrying out audit testing of revenue, audit manager and audit partner directing, supervising and review audit work on revenue.

Expert Speaker

Chee Hay Kheong Daniel

Daniel holds an Honours degree in Accountancy from the National University of Singapore and is a Certified Information Systems Auditor (CISA). He has more than 13 years of experience in the accounting profession, having worked for one of the Big 4 accounting firms both in Singapore and in the United Kingdom. He has also more than 5 years of senior management experience with MNCs, managing their operations in Singapore and Asia.

Daniel is a highly sought-after seminar trainer. He was an Adjunct Professor in the School of Business, Singapore University of Social Sciences and an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He served as a committee member of both the IT Committee and the Examination Committee of ISCA, and was a Committee member of the Disciplinary Sub-Committee of Accounting and Corporate Regulatory Authority (ACRA).