How to Master Remote Auditing – Revenue Testing

Even in normal circumstances, traditional substantive methods often prove to be challenging when testing revenue.

Sampling often necessitates large testing volumes. Substantive analytics is often impaired by an inability to define independent expectations and corroborate variances.

When auditing remotely this challenge is magnified.

An innovative audit approach incorporates data analytics which analyse 100% of revenue transactions.

Such techniques can be used to perform advanced risk assessment analytics and reduce substantive procedures. Or to go further and obtain substantive audit evidence, replacing traditional tests.

Audit teams must be mindful of addressing all assertions relevant to both the risk of fraud and the risk of misstatement. For example, where completeness of revenue is deemed the focus of fraud work, this should not result in the testing of occurrence being ignored.

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