Audit risks

Professional requirements

Fraud risk from revenue recognition.

Why is it significant?

This is a presumed fraud risk. There are generally pressures or incentives on management in the for profit sector to commit fraudulent financial reporting through inappropriate revenue recognition when performance is measured in terms of year-overyear revenue growth or profit.

Our audit approach

This fraud risk has been rebutted as it is not applicable to the Corporation as performance is not measured based on revenue or earnings.