Abstract:
This Journal of Accountancy feature summarizes findings from an AICPA peer review survey identifying common challenges encountered by auditors and preparers with ASC 606 implementation. Key concerns include assessing risks of material misstatement, documenting contract terms, and understanding performance obligations. Although published in 2021, the issues remain persistent and instructive, as the survey reflects actual trouble spots surfaced by audit practitioners.
Why it Matters:
Peer reviewer findings provide a practical barometer of where revenue recognition compliance efforts fall short in real practice. These insights matter to companies and auditors because they highlight recurring weaknesses — such as documentation gaps and risk assessment issues — that can lead to audit findings or restatements. Even though this is a few years old, it remains highly relevant because many of these challenges continue to surface in practice.
