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Surging Auditors: Revenue Rush (SAU5)

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Stepping into the shoes of an outside technical consultant, each participant must perform an ASC 606 assessment for Quality Tiles, Inc. (QTI), a company recently acquired by Home Décor and More, Inc. (HDM). HDM management needs to ensure the company is in compliance with GAAP related to revenue recognition before the next board meeting. Participants will meet with GTI’s controller and must strategically ask the right questions. Based on the information received, they will apply guidance in ASC 606, which can be complex, to a series of revenue recognition considerations to determine if revenue is being recognized appropriately.
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