The Public Company Accounting Oversight Board has issued a practice alert to auditors to call special attention to their numerous duties under auditing standards to take a careful look at the work companies have done to adopt a new, five-step method for determining when and in what amounts to recognize revenue in financial statements. The guidance reminds auditors that revenue is one of the largest accounts in financial statements, and a classic target for fraud, especially in the midst of such a huge shift in requirements.
