October 24, 2020

FLASH: Sales, Accounting Personnel Face Pressure to Meet Revenue Goals

Marvell Technology Group's audit committee launched an investigation into the company's revenue recognition policies last September.

They didn't find any funny business but did learn that “internal controls were not fully followed,” “revenue was recognized prematurely for some transactions,” and the real bombshell:

The committee also said there was "significant pressure" on sales and finance employees to meet revenue targets

If I’m an audit committee member and we spend six months looking for fraud only to learn that some internal controls didn’t work perfectly 100% of the time and there’s pressure on sales and accounting people to make their numbers, I’d be asking for those six months back.

[Reuters]

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