Company H specializes in custom software solutions. It recognizes revenue upon milestone completion, invoicing clients accordingly. Payments terms vary, with some clients on net 30 days and others on net 60 days. The company has experienced growth and increased its client base significantly in the past year. 

Identify and briefly discuss any internal control weaknesses 

Discuss substantive audit procedures you may perform in this example

Answer rating: 100% (QA)

Internal Control Weaknesses Revenue Recognition Lack of clear milestone definitions Vague or subjective milestone definitions can lead to management manipulation of revenue recognition timing Inadequa... View the full answer