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Concept explainers
Identify three revenue accounts and related
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Explanation of Solution
Auditing operations:
The auditors while examining the operations, the liabilities and assets get verified along with the accounts of expenses and revenue from the income statements. The auditors will use the product mix from the analytical procedure, cross-referencing, and analyzing the particular transactions to identify the omissions, inconsistencies, and errors that remained to be disclosed from auditing the balance sheet accounts.
The revenue and related balance sheet accounts to be verified at the time of auditing balance sheet accounts:
Sales accounts, royalty, and interest earned are three revenue accounts whereas accounts and notes receivables, intangible assets, and investments are three related three balance sheet accounts to be verified while auditing the balance sheet accounts.
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Chapter 16 Solutions
Principles Of Auditing & Other Assurance Services
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