One year after having its revenue recognition flagged as a critical audit matter (CAM) Accolade, Inc. (ACD), a provider of virtual healthcare and employee benefit plan navigation services, disclosed a new CAM related to revenue. The company’s auditor, KPMG, cited “Sufficiency of audit evidence over revenue” as a new CAM in Accolade’s most recent annual report:

“....due to the number of revenue streams with unique revenue processes and IT applications involved. This included determining the revenue streams over which procedures were performed and evaluating the nature and extent of evidence obtained over each revenue stream.”

Note the reference to IT applications in the auditor’s note.

The prior year— when Accolade’s revenue recognition was flagged— KPMG specifically evaluated the effectiveness of certain internal controls related to Accolade's revenue process.

Interestingly, Accolade revealed in its latest annual report it’s implementing a new enterprise resource planning (ERP) system to:

“...which is designed to accurately maintain our financial records and integrate our processes.”

Separately, Accolade’s use of web tracking pixels is now under federal scrutiny:

“... have received and responded to a “compliance review” from the U.S. Department of Health and Human Services, Office for Civil Rights (OCR) related to the usage of digital website trackers, such as Meta’s Pixel. The compliance review is focused on whether the use of such trackers collects and discloses protected health information for visitors to a healthcare-related website to third parties, such as Meta and Google.”

Accolade says it is unaware of any related regulatory audits, investigations, or actions relating to our privacy practices.