Auditing Revenue More Efficiently & Effectively

As noted in AU-C 240, Consideration of Fraud in a Financial Statement Audit, revenue recognition is presumed to be a fraud risk. The auditor should treat those assessed risks of material misstatement due to fraud as significant risks unless the auditor concludes the presumption is not applicable in the circumstances of the engagement. The frequency with which revenue anomalies are found in financial statement frauds are behind this assumption in the auditing standards. When asserted otherwise, documenting the basis