Some businesses, especially publicly traded ones, may choose accrual accounting to reduce volatility in earnings, while start-ups or small businesses may choose to go with a cash basis accounting option. A poll conducted by the Journal of Accountancy on Topic 606 discovered that one in five respondents reported that one of the most common audit perils for their clients was the risk of evaluating “material misstatement” when it comes to recognizing revenue under Topic 606...........
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