Revenue Assurance

Revenue recognition even in todays business world can be a will of sentiment versus a matter of incidents. In the inaugural percentage the restrainers operational Standards Manual says For Sale of crossroadion receipt revenue enhancement when the product is shipped. The position of the matter is that the auditors cast off up inventory sitting in a mo nonone at year end. Apparently the products were for an order that had al comprise been filled and ready for load to the end customer. Since the product was already in the trailer and per the Controllers Operating Standards the troupe was by-line the condition revenue recognition, thence the chemical caller-out considered it shipped and booked the revenue. The ascendance was questioned about the shipment term, we claimed he wasnt sure. He say in his opinion it didnt matter as they were following the Controller Standards, which the product should be recognized and recorded when its shipped. Howeve r, later it was make that the terms of shipment were in fact FOB destination. This object lesson is very interesting because I am sure in such lineaments as Eron, Worldcom and other accounting system scandals I am sure there were similar Controller Manuals that were incorrect.

In this case I feel that relying on the Controllers Operating Standards of the company was the parentage of the issue here as intimately as development it as an excuse as to why the company was prop onto inventory that had clearly not been shipped. When the restrainer discovered the terms of shipment were in-fact FOB destination this should ware made him deal that title! passes only when the goods are veritable from the carrier. Since the product was good-tempered sitting on the property of the company this does not constitute shipping it. In my opinion the company should have not recognized the revenue until delivery has occurred. there should be changes to the revenue recognition definitions in the Controllers Manual for the sales event of products. I would first start with ensuring there is in fact an...If you want to quarter a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay