What it is
Revenue is presumed to carry a fraud risk, and under ASC 606 the risk sits in judgments made contract by contract: whether a contract exists, what the performance obligations are, how the price is allocated and when control passes.
This program groups the work into understanding and controls, contract-level testing, journal entries and cutoff, and presentation. Each procedure has an assertion column and spaces for the workpaper reference, sign-off and result.
When to use it
- Entities with multi-element, long-term or variable-price contracts.
- First year audit under ASC 606 or after a change in contract types.
- When a revenue fraud risk response needs to be written down by procedure.
What’s inside
- Risk table linking revenue risks to procedure references
- Contract criteria, combination and distinct-good tests from ASC 606
- Allocation, variable consideration, returns and modification procedures
- Cutoff, journal entry, contract balance and disclosure procedures
Standard cited
This template follows ASC 606 / AU-C 315, 330. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 315 explained.
Questions
Does the program replace the audit program for accounts receivable and revenue?
No. It adds contract-level testing for entities where judgment under ASC 606 matters. Use it with the receivable confirmation and cutoff work in your base program.
Which ASC 606 paragraphs does it follow?
The contract criteria in 606-10-25-1, combination in 25-9, distinct goods in 25-19, variable consideration in 32-5, over-time criteria in 25-27 and balance sheet and disclosure requirements in 45 and 50-8.
Related templates
- Audit Program: Accounts Receivable and Revenue
- ASC 606 Five-Step Contract Memo
- Revenue Recognition Fraud Risk Presumption Memo (AU-C 240)
- Revenue Contract Testing Attribute Workpaper
Last updated 11/06/2026. All free templates.