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Revenue Recognition, Meet Internal Controls in 2017
Tammy Whitehouse of Compliance Week writes that "accounting and audit leaders can expect 2017 to be the year when monumental accounting change crashes head on with continued intensity around internal controls, and it could be an ugly collision for companies that are not adequately prepared. In terms of accounting change priorities, companies can expect revenue recognition to easily win the top position on their to-do list in 2017. The change is so pervasive, in fact, it should probably occupy the second and third positions on those task lists as well."
Jill Klindt, Vice President and Chief Accounting Officer at Workiva, says she’s expecting auditors to look for proof of how the company reviewed and considered the new (revenue recognition) standard. “We have to support that this was a thorough review and we’re not just making it up,” says Klindt. She’s expecting to produce plenty of memos explaining how individual contracts were reviewed and addressed under the new standard, she said.
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