Final answer:
To ensure that revenue recognition and matching principles are followed, segregation of duties, documentation of transactions, and regular reconciliations are important.
Step-by-step explanation:
To ensure that the revenue recognition and matching principles are followed, certain controls and procedures can be implemented. These include:
- Segregation of duties: Assigning different individuals to handle key aspects of the revenue recognition and matching processes helps prevent errors or wrongdoing.
- Documenting transactions: Detailed records of sales, expenses, and other financial activities should be maintained to ensure accurate revenue recognition and matching.
- Regular reconciliations: Periodic reconciliations of financial records with bank statements and other data sources help identify discrepancies and ensure the accuracy of revenue recognition and matching.