Revenue (REV) - Key Controls

Question 1

REV02.1

Answer 1

Review new or changed contract revenue accounting assessment

Question 2

REV02.6

Answer 2

Review calculation of trading income

Question 3

REV02.2

Answer 3

Review calculation of percentage of completion revenue to be recognized.

Question 4

REV02.3

Answer 4

Review calculation of revenue for retainers recognized on a straight line basis.

Question 5

REV02.5

Answer 5

Review calculation of media commission

Question 6

REV02.7

Answer 6

Review calculation of client incentives

Question 7

REV02.8

Answer 7

Review calculation of uncapped Time and Materials and other Point in Time revenue

Question 8

REV02.9

Answer 8

Review true up of short terms projects recognized as point in time for quarterly reporting purposes

Question 9

REV03.1

Answer 9

Review of invoices in line with clients’ contracts

Question 10

REV05.1

Answer 10

Ensure that mark-ups on production and media third party costs are in line with client agreements

Question 11

REV10.1

Answer 11

Review reconciliation of the accounts receivable subledger to the Trial Balance and investigate differences.

Question 12

REV10.2

Answer 12

Review the Accounts Receivable aging and assess recoverability of items aged older than 60 days (on a MODA basis).

Question 13

REV10.3

Answer 13

Review the recognition of Accounts Receivable over 120 days management charge

Question 14

REV11.1

Answer 14

Ensure credit notes are appropriately approved

Question 15

REV11.2

Answer 15

Ensure all credit notes are appropriately approved

Question 16

REV14.1

Answer 16

Review of non media discounts and rebates due to clients under the terms of their client contract or equivalent

Question 17

REV26.1

Answer 17

Job/project costs and transactions are reviewed in detail

Question 18

REV27.1

Answer 18

Review reconciliation of the accrued revenue subledger to the Trial Balance and investigate differences.

Question 19

REV27.2

Answer 19

Review the Accrued Revenue aging and assess recoverability of items aged older than 90 days.

Question 20

REV27.3

Answer 20

Review the recognition of Accrued Revenue over 180 day management charge

Question 21

REV30.1

Answer 21

Review reconciliation of the deferred revenue subledger to the Trial Balance and investigate differences.

Question 22

REV30.2

Answer 22

Review the deferred revenue aging and assess the validity of items aged older than 90 days.

Question 23

REV33.2

Answer 23

Confirm approval of non standard billing and payment terms

Question 24

REV35.1

Answer 24

Review that there is a valid client contract/estimate

Question 25

REV35.2

Answer 25

Review the contract/estimate detail input is accurate and complete

Question 26

REV35.3

Answer 26

Approve employee timesheets