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Unformatted text preview: Volume passing through these accounts Complexity of these accounts (SR&A, S Disc, % of Sales, % of Aged A/R, products, locations, nature of product sold, related parties sales) Over 60% of audit failures involve revenue and asset overstatement Interstate example W.R. Knechel Accounting for Sales Revenue The revenue principle requires that revenues be recorded when: The Earning Process is substantially complete . The amount is measurable. Cash Collection is reasonably assured. Magazines Winery FOB...
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- Fall '08