Following our investigation, we realised that some of the sales recorded in the current year actually took place and were related to the following year.
We then requested more evidence from the client, asking him to provide us with transportation documents. At the end of our analysis, we found that some of them were indeed dated with the upcoming year.
Therefore, our team concluded that the external accountant's mistake was in recording invoices without considering the year. The income gap should have been recorded for the following financial year. We prepared our report to the client stating the amount of miscalculations and identified gaps in the financial statement.