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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Audit risk
I understand but I just meant to ask that as examiner has mentioned the following answer for the audit risk mentioned in my first post
“These deposits should not be recognized as revenue in the profit or loss until the performance obligations as per the contracts have been satisfied, which is likely to be when the building is finished and the sale process is complete. Instead they should be recognized as deferred income within current liabilities.
Management may have incorrectly treated deferred income as revenue resulting in overstated revenue and understated liabilities”
But in exam if I write both the above paras ,then will the First para irritate examiner? Only this much I intend to ask
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