Audit-me Weblog (the Journal)

Revenue from the sale of goods should be recognized if all of the five conditions mentioned below are met.

The reporting entity has transferred significant risks and rewards of ownership of the goods to the buyer;
The entity does not retain either continuing managerial involvement (akin to that usually associated with ownership) or effective control over [...]

“Revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably” (IAS 18 Revenue).
Revenue can take various forms, such as sales of goods, provision of services, royalty fees, franchise fees, management fees, dividends, interest, subscriptions, and so on.
The principle issue in the recognition [...]

ISA 315 Par. 100 states that the auditor should identify and assess the risks of material misstatement at the financial statement level, and at the assertion level for classes of transactions, account balances and disclosures.
Risk and materiality are closely related. Materiality must be established before risk has any meaning.
Desired audit risk is the subjectively determined [...]