Trading companies in Taiwan often recognise revenue when the invoice prints, not when control of the goods actually passes. During a busy month-end, that gap is easy to miss — especially on consignment stock sitting at a customer warehouse or goods still on a truck between plants.
What we sample
In a month-end close audit we ask for the shipping cut-off report for the final three business days, then match a sample of invoices to delivery notes, bills of lading, or customer receipt acknowledgements. We pay attention to:
- Invoices dated before month-end with delivery evidence after
- Credit notes issued in the first week of the next month that reverse period-end billings
- Consignment replenishment treated as a sale without a corresponding consumption report
A practical habit for close owners
Keep a single cut-off folder — digital or physical — that holds every shipment leaving on the last two days of the month. When the auditor (or your parent company) asks for evidence, you are not hunting through email threads while the freeze clock runs.
If your volumes spike around Chinese New Year or peak export weeks, tell us before fieldwork. Cut-off sampling takes longer when docks are crowded, and the issues log is more useful when it arrives before the board pack is already designed around inflated revenue.