Tuesday, March 6, 2007

You may be in trouble if you use the Earned Value method for revenue recognition...

I found a very interesting case - Michael Sullivan: Admin. Proc. Rel. No. 34-46908 / November 26, 2002.

A company changes the way how they measure their work progress from a cost-based percent complete to an earned-value method. The poor CPA did not point out the problem of using this method when he audited this company. SEC stops his CPA job for at least one year.
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