Improper revenue recognition has long accounted for a substantial portion of financial statement fraud. By recording revenue early, a dishonest business seller or an employee under pressure to meet financial benchmarks can significantly distort profits. Fortunately, such manipulation leaves traces for fraud experts to find. Probably the most obvious marker is when a company records a large percentage of its revenue at the end of a financial period. Many transactions with unusual payment terms can also be a danger sign. Contact us immediately if you suspect that revenue is being recognized when it shouldn’t be.