When your company outsources revenue recognition
This question was asked by an attendee during the Proformative
A video of the webinar can be viewed here: https://www.proformative.com/resources/webinar-video-taming-revenue-recognition-ensure-compliance-0
In any situation, you will first have to document your procedure for revenue recognition, and then test said procedure. In outsourcing, they may follow your procedure or have one of their own that you adopt by default. In the latter case you are still responsible for affirming that said procedure is representative of the transactions pursuant to the guidelines, and further you are responsible for affirmatively asserting (and therefore checking) that the guidelines are followed.
You can no more be sure that they are following the rules than your own internal staff; in either case you are the responsible party to verify that the rules have been followed.
