1. 1 Auditing Revenue

2. 2 Auditing Implication Designing of the audit plan and perform the audit Evaluating the results of our audit procedures Understanding the relevant revenue recognition criteria Understanding systems and processes for recording revenue

3. 3 Related Standards / Revenue Recognition Criteria IAS 18 IFRS TAS 18 Turkish Gaap ASC- 605 US- GAAP

4. 4 Auditing Implication Designing of the audit plan and perform the audit Evaluating the results of our audit procedures Understanding the relevant revenue recognition criteria Understanding systems and processes for recording revenue

5. 5 Auditing Implication / Assertions Cut off Revenue has been recorded in the correct accounting period. * Revenue is recorded too early (i.e., the entity records revenue in a period prior to when it should have been recorded). * Revenue is recorded too late (i.e., the entity records revenue in a period after which it should have been recorded). Completeness All revenue that should have been recorded has been recorded. * Goods are shipped and revenue is not recorded. Accuracy Amounts and other data relating to recorded revenue have been recorded appropriately. * Revenue is recorded using the incorrect price. Occurrence Revenue that has been recorded has actually occurred and pertains to the entity. * The entity has recorded revenue, but one or more of the revenue recognition criteria has not been met. Classification Revenue has been recorded in the proper accounts. * Input is recorded in the incorrect subsidiary ledger or general ledger account resulting in revenue amounts being reflected in the incorrect financial statement line items. AssertionsDescription of Assertion Risk of Material Misstatement «What could go wrong»

6. 6 Auditing Implication

7. 7 Designing of the audit plan and perform the audit Evaluating the results of our audit procedures Understanding the relevant revenue recognition criteria Understanding systems and processes for recording revenue

8. 8 Auditing Implication / Substantive Test of Details Cut off * Revenue is recorded too late (i.e., the entity records revenue in a period after which it should have been recorded). C_REV_8 The Accounting Manager reviews a listing of sales recorded in the five days before and after the end of the month to determine that sales are recorded in the correct period considering shipping terms and other terms of the transaction. Make a selection from shipping documents in the [X]-day period before year-end and determine if the transaction is recorded in the correct period based on inspection of the shipping records. Completeness * Goods are shipped and revenue is not recorded. C_REV_6 A log of goods shipped to customers, along with the associated invoice, is reviewed monthly to determine that all shipments are invoiced and that all invoices are recorded. Make a selection from an appropriate reciprocal population that contains items that should have been recorded throughout the period being tested and determine the transaction has been recorded. Assertions Risk of Material Misstatement «What could go wrong» Examples of Controls Examples of Potential Substantive Test of Details

9. 9 Accuracy * Revenue is recorded using the incorrect price. C_REV_7Logistics Manager reviews invoice and supporting documentation before revenue is recognized Detail Test Sales Occurrence * The entity has recorded revenue, but one or more of the revenue recognition criteria has not been met. C_REV_1 Invoices are generated only upon matching the purchase order and shipping documents, within established tolerances, completing a 3-way match. Review evidence of delivery of product Classification * Input is recorded in the incorrect subsidiary ledger or general ledger account resulting in revenue amounts being reflected in the incorrect financial statement line items. C_REV_10 General ledger accounts are coded to the corresponding financial statement line items based on pre-determined mapping when G/L accounts are set up. Finance personnel review the nature of sales transactions and supporting documentation to determine whether the entries were made to the appropriate G/L accounts. Detail Test Sales Assertions Risk of Material Misstatement «What could go wrong» Examples of Controls Examples of Potential Substantive Test of Details Auditing Implication / Substantive Test of Details

10. 10 Auditing Implication / Substantive Analytical Procedures

11. 11 Auditing Implication Designing of the audit plan and perform the audit Evaluating the results of our audit procedures Understanding the relevant revenue recognition criteria Understanding systems and processes for recording revenue