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Topic: Miscellaneous
Number of pages / Number of words: 4 / 894
Essay's paper body

However, he biggest flaw with this

method is that it only deals with costs. This means that there may not be

strong correlation between physical progress and costs incurred.

Conceptually, one would want to match revenues when the earnings

process is judged to be complete. Since costs don't necessarily mean

physical completion, the revenues may not represent actual completion...


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Since costs don't necessarily mean

physical completion, the revenues may not represent actual completion.

However, this method does match all revenues with appropriate expenses.

The audit risks associated with this method is that cost incurrence could be

accelerated to increase the estimate of the percentage completed...


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