In this article
01 · THE QUESTION
The assurance question
The ledger reports £12.6m of annual revenue and reconciles to the year-end schedules. That does not answer whether each treatment follows the amended five-step model.
The reviewer needs to know whether the standard, accounting policy, contract terms and underlying evidence support what was recorded, and which items need adjustment or further evidence before sign-off.
02 · THE FRICTION
Why the answer is difficult
The evidence is spread across different records. The standard defines the test. The policy explains how the organisation applies it. Contracts set the promises, pricing and delivery terms. The ledger shows what was recorded. Dispatch notes and service records show what happened.
Each source can look reasonable on its own while the relationship between them fails. An invoice date may agree to the ledger, for example, while the contract says control transfers only on delivery.
The ledger can reconcile while the accounting treatment still fails.
03 · DENDROH'S WORK
What Dendroh investigates
Dendroh turns the accounting model into a reviewable programme. It applies the same five questions to the relevant contract and transaction evidence, then checks whether the organisation's policy matches the treatment used in practice.
FRS 102 SECTION 23
One model, tested record by recordSupporting evidence stays connected to the finding it informs. Missing proof is shown as an open issue, not converted into a confident answer.
04 · THE FINDINGS
What the review surfaces
The result is not a blanket pass or fail. The review separates treatments that are supported from items requiring adjustment, deferral or further evidence.
Revenue recorded before control transferred
Two year-end dispatches were invoiced before the contract evidence supported recognition.
Service revenue recognised before completion
Installation was distinct from the goods and had not been completed at the reporting date.
Expected rebate omitted
The transaction price did not reflect the volume rebate supported by the contract terms.
Delivery evidence missing
The treatment remains open because the proof needed to support the conclusion was not available.
Control transferred on dispatch
The contract, dispatch terms and underlying evidence agreed with the recorded treatment.
05 · THE OUTPUT
What the work produces
The reviewer receives a cited record of what was tested, what was supported, what remains open and which entries require correction. The same record can supply the downstream working papers and adjustment schedule without rebuilding the analysis.
- Amended FRS 102 Section 23
- Approved revenue accounting policy
- Customer contracts and amendments
- Revenue ledger and year-end schedules
- Dispatch and delivery evidence
- Installation and service completion records
06 · AUTHORITY
Authority and accountability
In this application, an authorised reviewer chooses the conclusion and signs the record. Dendroh performs the structured investigation, keeps the supporting and conflicting evidence visible, and prepares the work for review.
The final statutory audit opinion still depends on the wider engagement and the people responsible for it. Dendroh does not replace that responsibility.
