Revenue Recognition Investigation

Table of Contents

Situation

A global automotive manufacturer faced allegations of noncompliant revenue recognition practices, raising regulatory and financial reporting concerns across multiple jurisdictions.

SFG Role

SFG supported the cross-border investigation, leading document review, interviews, and multilingual analysis while contributing to regulatory reporting efforts.

Approach

  • Investigated revenue recognition practices across international subsidiaries
  • Translated and analyzed Spanish-language emails and communications
  • Coordinated with subsidiaries in Mexico and Europe to gather relevant information
  • Conducted interviews with key personnel involved in revenue processes
  • Reviewed contracts, supporting documentation, and accounting entries for compliance
  • Assisted in drafting findings for submission to the Securities and Exchange Commission

Outcome

The investigation clarified compliance gaps and supported accurate regulatory disclosure, strengthening the client’s financial reporting and governance framework.

Expert Testimony

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