Financial Statements For the year ended
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- Relevant disclosures in the Consolidated Financial Statements
| Revenue recognition We identified revenue recognition as one of the most significant assessed risks of material misstatement due to fraud. This arises from the existence of manual adjustments and estimates concerning the number of members to be struck off and the incentive to increase member numbers. Revenue from fees and subscriptions, together with qualifications and exams totalled £221,558k for the year ended 31 March The ACCA make an annual adjustment to income to reflect the anticipated value of income reversed due to removal of students and members. There is a risk that the associated significant income streams are not recognised in the correct financial year. In responding to the key audit matter, we performed the following audit procedures • Assessed the revenue recognition policy to determine whether it is appropriate Substantively tested a sample of revenue recognised in the year from subscriptions, exams and practicing certificates to invoices and supporting documentation to confirm members being active and to determine whether that revenue was recognised in the correct period and that the amount was consistent with the type of service provided Performed substantive analytical procedures by developing an expectation of total revenue recognised from different revenue streams as well as for deferred and accrued income based on source data and A sample from the adjustments made for removed members was selected and the corresponding ID’s have been traced to the system to ensure that the individuals have been inactive for the correct amount of time required before being removed. Key audit matter How our scope addressed the matter Relevant disclosures in the Consolidated Financial Statements • Financial statements Note 2(ciii) Critical accounting estimates and judgements , Revenue recognition Note 4 Segmental reporting Note 6 Operating Income Note 7 Subscriptions and Audit Committee Report Significant issues related to the financial statements Revenue recognition, including the completeness, existence and accuracy of income recognised in the year. Download 0.68 Mb. Share with your friends:
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