Sales recognition for an international service company

As part of our audit assignment, we were asked to certify the financial statements of an international company specializing in the provision of services. Sales recognition is a particularly sensitive point, as it has a direct impact on the reliability of the financial statements and the interpretation of the company's performance. The aim of our audit is therefore to ensure that the applicable accounting principles are respected, particularly in terms of revenue recognition, and that the sales figures presented are a true and fair reflection of the company's actual activity.

To meet this objective, we implemented an audit approach tailored to the company's sector and business model. We began by familiarizing ourselves with the entity and its environment. We then reviewed the client's procedures and carried out tests to ensure that internal controls were functioning properly. This involved analyzing service contracts, creating projects in the management tool, assigning employees to projects, validating the hours spent by these same employees, checking invoicing methods and validating the collection of services. These tasks were carried out on a significant sample of transactions, by reconciling contractual elements, proof of execution and accounting records. The various tasks carried out enabled us to validate the assertions of completeness, reality and sales measurement.