inHong Kong corporate auditOne of the auditor's determinations is a cut-off test of revenue that tests whether any revenue that is not part of the current period has been recognized early or late. Auditors can make that determination by testing a few transactions at the end and beginning of the year.

In our audit work, we often encountered customers' doubts about the time of income recognition, which was reflected in the end of the year when the customer thought I had not received the payment, so I did not confirm the income. The recognition of revenue transfers the control of the goods, and all the economic benefits brought by the goods that can be dominated by the customer should be recognized, rather than recognized upon receipt of the payment.

Auditors are generally in progressHong Kong corporate auditCustomers are required to provide several revenue contracts, invoices, bills of lading and transportation documents at the beginning of the next year for judgment. If the revenue of the current year is found to be confirmed in the next year, the auditor will communicate with the audited unit and ask it to adjust its income, that is, confirm it correctly in the current period and submit the updated financial statements to the auditor.

So in doingHong Kong corporate auditBe sure to focus on deadlines at the end of the year.

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