They’d be testing of cash receipts and testing revenue is recognised correctly. They would see that all receipts are from financing company and not from SME’s. To test revenue recognition they would need to compare when the receipt occurred and compare to agreement with sme and the length of time the contract exists for so they can calculate how much of the receipt is revenue and how much is deferred revenue at a point in time.They would see there is no agreement to pay from customer and they would see the receipt is from fcc. They don’t need to do 100% but they would do a sample large enough to be comfortable that there are s no material misstatement.
That’s pretty basic auditing for deferred revenue and revenue
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They’d be testing of cash receipts and testing revenue is...
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