How would you audit PPE, EQUITY, REVENUE, EXPENSES. ASC 606. How would you tackle a situation when cleint is not providing relevant supports? Tell me about yourself? Walkthough of any process. How would you test a conteol for expense?

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Accepted Answer

Auditing PPE, equity, revenue, and expenses requires a systematic approach, especially under ASC 606 guidelines.

PPE: Verify existence through physical inspection and assess valuation using depreciation schedules.
Equity: Review stock issuance documents and ensure compliance with relevant regulations.
Revenue: Under ASC 606, test revenue recognition by examining contracts and ensuring performance obligations are met.
Expenses: Analyze expense accounts for completeness and accuracy, ensuring proper documentation is available.
If the client is uncooperative, escalate the issue to management and consider alternative procedures like analytical reviews.