Part of the CPEA ASC 606: Revenue Recognition Series
FASB ASC 606 introduces different and complex accounting principles related to revenue. Management may be dealing with new areas of judgment and may be developing new accounting estimates. Likewise, these FASB ASC 606 related judgments and estimates will be new to auditors and may, therefore, inject risks, perplexities, and challenges into engagements. Regardless of changes to the accounting standard, the fundamental principles of auditing complex accounting estimates remain the same.