Covid-19 Fraud Risk: Practical Guidance - Revenue Recognition

Revenue recognition remains the most common form of fraudulent financial reporting. Misstatements in revenue may arise when entity personnel at various levels participate in schemes, frequently with the collusion of others within the entity or with customers or suppliers, to intentionally overstate revenues. Studies find that the two most common forms of fraudulent financial reporting related to revenue are fictitious sales or revenue and improper timing of revenue recognition. This report addresses those two most common forms of fraud and