Advanced Auditing

The SEC defines when an entity can recognize revenue. -> See official pronouncement herehttps://www.sec.gov/interps/account/sabcodet13.htm

• Persuasive evidence of an arrangement exists,
• Delivery has occurred or services have been rendered,
• The seller's price to the buyer is fixed or determinable, and
• Collectability is reasonably assured.

The business environment continues to change with new forms of revenue models are invented. (eg: google, facebook, online gaming etc.) etc.What are the implications / challenges of applying revenue recogniztion rules on new forms of busienss ?How will it change the way auditors audit revenue ?