Revenue cut-off mistakes that surface during March year-ends

March year-ends concentrate shipping activity into the final days of the fiscal calendar. Auditors test whether revenue recorded near year-end belongs to the correct period by matching bills of lading, delivery notes, and invoice dates to the recognition policy in the financial statements.

Frequent issues include goods shipped FOB destination that were still in transit at midnight on 31 March, bill-and-hold arrangements lacking the criteria for recognition, and credit notes issued in April that quietly reverse March sales. Controllers can reduce surprises by preparing a cut-off schedule that lists every shipment within five business days on either side of year-end, with Incoterms noted.

Tideway’s substantive testing samples these shipments and traces them into the ledger. Clear documentation shortens fieldwork; missing delivery evidence lengthens it and can push adjustments into the closing pack.