False Revenue in the books is an ongoing risk

Recently shares of chipmaker Marvell plummeted on Friday after the company said it was unable to file its quarterly earnings results on time, but that it expected to post a whopping $382.4m net loss.

As per Marvell’s SEC filing Audit Committee of the Company’s Board of Directors is conducting an independent investigation to review certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment. More specifically, the investigation has focused on the approximately 7 to 8 percent of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter.

As internal auditors this is one area which of perpetual risk given the pressure management at all levels has to meet revenue targets.

Source : http://www.theregister.co.uk/2015/09/11/marvell_earnings_delay/

0 views

Recent Posts

See All

Petrol Pump Fraud

With the number of distractions we have today, all it takes is a 2 second distraction at the right time for the petrol pump attendant to make a cool 500 bucks of you. How is done? When you pull up to

©2020 by Ankit Manglik. Proudly created with Wix.com