UNBILLED REVENUE AS PER AS7

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s.k.majumdar

s.k.majumdar (Querist)
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07 October 2009 DEAR SIR
CAN U PLS. TELL ME ON THE AUDIT PROCESS AND A POSSIBLE AUDIT REPORT ON UNBILLED REVENUE AS PER AS7
THANX AND REGARDS
S.K.MAJUMDAR
ASST.MANAGER-IA

Guest

Guest (Expert)

08 October 2009 Unbilled revenue or Work In Progress depends on contract terms. Basic audit procedures would be as follows: -
1. Check WIP Calculation for sampled contracts, whether it is as per terms of contract or not.
WIP would be equal to % work completed less billing already done
2. Check WIP Ageing to check whether invoices have been duly raised
3. Check WIP reconciliation if accounting software identifying or Calculating WIP and book keeping software are different
4. Check accuracy of General provisioning if the same is as per policies of the company
5. Check accuracy of specific provisioning and check documentation against sampled specific provisions
6. Check if there has been signifant increase in WIP in comparison to increase in revenue (Analytical procedures).

I think these audit procedures would be sufficient to test WIP / Unbilled Revenue.

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