Audit library / 02 Revenue and receivables
Revenue and Receivables Audit Kit
A complete, ready-to-use audit plan for revenue, trade receivables and expected credit losses. 23 procedures in 8 phases, each showing what to do, the assertion, the risk and the evidence to obtain.
- Step-by-step guide on how to use the plan
- 23 audit procedures, from planning to sign-off
- Covers revenue recognition and contracts, sales testing and cut-off, receivables existence and confirmation, valuation and expected credit losses, credit notes and adjustments and fraud red flags and data analytics
- Status and result dropdowns with an automatic progress tracker
- Fillable PDF version you can complete on screen
- Full English and Arabic versions (4 files)
Preview the checklist
Here are the first procedures from the kit. Buy the kit to unlock everything.
| Ref | Procedure | Assertion | Status | Result |
|---|---|---|---|---|
| A. Planning and understanding | ||||
| A1 | Understand revenue streams, pricing, contract terms, credit policy and the order-to-cash process. Identify significant risks, including the presumed fraud risk in revenue recognition.Risk: Audit approach does not address the real revenue risks. | Controls | Not started ▾ | |
| A2 | Perform analytical review of revenue by month, product, customer and region against prior year and budget. Investigate unusual trends, especially near period end.Risk: Misstatement hidden in unexpected revenue movements. | Accuracy & valuation | Not started ▾ | |
| A3 | Test key controls: credit approval for new customers, price and discount approval, and segregation between sales, invoicing and cash collection.Risk: Sales made to uncreditworthy customers or at unauthorised prices. | Controls | Not started ▾ | |
| B. Revenue recognition and contracts | ||||
| B1 | For significant contracts, check that revenue is recognised when control transfers to the customer, in line with IFRS 15 (five-step model).Risk: Revenue recognised too early or in the wrong amount. | Accuracy & valuation | Not started ▾ | |
| B2 | Identify contracts with multiple deliverables, variable consideration, rebates or rights of return, and check the accounting treatment.Risk: Variable or bundled elements misstated. | Accuracy & valuation | Not started ▾ | |
| B3 | Review deferred revenue and customer advances: agree to contracts and confirm the performance obligation has not yet been satisfied.Risk: Revenue recognised before it is earned, or liabilities understated. | Cut-off | Not started ▾ | |
17 more procedures are inside the full kit
Plus the step-by-step guide, dropdowns, progress tracker and the fillable PDF.
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