Revenue Recognition Policies for the Army Defense Business Operations Fund

摘要

The overall objective of the revenue accounts audit was to determine whether revenues on the FY 1996 Defense Business Operations Fund consolidated financial statements are presented fairly in accordance with the 'other comprehensive basis of accounting' described in Office of Management and Budget Bulletin No. 94-01, Form and Content of Agency Financial Statements, November 16, 1993. Specifically, we determined the validity of revenues recognized for the Defense Business Operations Fund. During this portion of the audit, we reviewed the planned change to the method for recognizing contract revenue in the Standard Industrial Fund System. We did not review management controls over contract revenues because the issue addressed in this report pertains to DoD policy and not to operations. We will assess internal controls and compliance with laws and regulations applicable to those objectives in a future report.