Your view of what the companies’ auditors would need to consider in the effective audit of its primary revenues. For example, what would you do to audit the revenue streams? How would you verify that they are correctly stated in the financial statements without material error? Identify no more than three audit procedures around revenue recognition for the company you selected.

Answered: Your view of what the companies’…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Your view of what the companies’ auditors would need to consider in the effective audit of its primary revenues. For example, what would you do to audit the revenue streams? How would you verify that they are correctly stated in the financial statements without material error? Identify no more than three audit procedures around revenue recognition for the company you selected.

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Step 1 - Introduction

Auditing is a process of examination of books of account in order to ensure that the accounts have been made as per the generally accepted accounting principles. Revenue is the income of a firm which is generated by selling goods or rendering services to the client. Auditing of revenue recognition becomes important because it has the high changes of misstatement.

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