The objective in investigating this type of contract is to determine that income recognized during the current period is based on the total gross profit projected for the contract on completion and on the work performed to date. ... The auditor should obtain and review workpaper schedules that summarize contract information from the contractor's books and records together with audit data arising from the audit of contract activity. ... For these procedures, the auditor could trace the data to their sources, such as contract cost records or project manager's status reports. ... Also...

• Word Count: 1880
• Approx Pages: 8
• Grade Level: Graduate