Risk Assurance Auditing

With respect to revenue recognition you need to spell out with the four criteria are (as you can find at any of the big 4 accounting firm websites. The incorporate conservatism, matching, timing and objectivity (these are accounting principles you can find in your intermediate text book (and probably in the principles text book too).

There is both fraud AND excessive optimism. Everything is gray in accounting…or at least most issues are…With respect to the Fraud, I expect you to tell me what elements where in place in order to commit or encourage fraud.

See also exhibit in the case…I also expect you to trace the chronological chain of events and tie this into your answers.

You should improve the question relating to the Saga question.

When you analyze and answer question 3, its best to do it in bullet point format and address each of the stakeholders separately. It is not enough to make some basic statements as you are doing.

With respect to the ethics question, cocoon your answer in what we have been discussing in class and COSO

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