risk
Revenue-recognition misstatement (fictitious, mis-timed, mis-measured)
Fictitious or channel-stuffed revenue, revenue not recorded for delivered goods, incorrect transaction-price allocation or percentage-of-completion, and principal-vs-agent gross/net errors — the highest-risk assertion cluster in the revenue cycle.
In catalog since 2026-09-17T22:28:00Z · Last changed 2026-09-17T22:28:00Z (f368a6cce277)
Record JSON · Open in map · Data retrieval guide
Catalog revision: 791ff2dd3a45707290badee660f185e514d15f1cf518908628f425c2f2c56ee4. A connection does not establish full coverage.
Attributes
- category
- financial_reporting
- domain
- Financial Reporting Controls (SOX)
- Compliance, Audit & Assurance
- taxonomy
- sox-rmm-assertion
- inherent_rating
- high
Details
- risk_id
- fin-revenue-recognition-misstatement
- category
- financial_reporting
- likelihood
- medium
- impact
- high
- inherent_rating
- high
- treatment
- mitigate
- taxonomies
- sox-rmm-assertion
Source
No record-specific source URL is provided.
Connections
- UC-ACCESS-03 — Enforce least privilege, need-to-know, and segregation of duties mitigates Revenue-recognition misstatement (fictitious, mis-timed, mis-measured)
- strength
- primary
- rationale
- Segregation of duties across the revenue cycle directly prevents one party initiating and recording fictitious or mis-timed revenue.
- UC-FIN-02 — Review financial results and the period-end close mitigates Revenue-recognition misstatement (fictitious, mis-timed, mis-measured)
- strength
- primary
- rationale
- Review of revenue results and variances detects fictitious, mis-timed, or mis-measured revenue.
- UC-FIN-04 — Authorize transactions with attributable approvals mitigates Revenue-recognition misstatement (fictitious, mis-timed, mis-measured)
- strength
- related
- rationale
- Requiring authorization of revenue transactions/credit memos reduces fictitious or channel-stuffed revenue.