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Tip 4: Focus your revenue cutoff testing

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Learn about Revenue cutoff testing and how you can benefit from it.

How does this add value to your audit?

Pinpoint precision

Using the Filter Builder on the Data Table dashboard, transactions can be filtered for across a number of different data points in addition to the account (i.e., revenue). So in testing the cutoff of revenue around year-end, you can filter for any revenue transactions which are:

  • Within a certain number of days from balance sheet date; and/or
  • Trigger certain control points (i.e., Flow Analysis); and/or
  • Above a certain monetary threshold (i.e., Filter all revenue posted towards the end of the period, that is above materiality, to ensure Revenue Recognition criteria is met, and revenue is recorded in the right period)

Create a holistic testing strategy

Combining the results of a transaction-level review as described above together with in-app visualizations of revenue account trends over time and key ratios over time, you are able to get a more holistic picture of revenue transactions around year-end to help inform your testing strategy.

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