Time Warner inflated its revenue in 2000 and 2001 by entering into round-trip transactions with customers with
Question:
a. Is this type of misstatement difficult to prevent or detect by internal controls? Why? Explain your answer.
b. Describe a substantive test that the auditor might use to uncover misstatement involving round-trip transactions between the audit client and their customers.
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Related Book For
Auditing and Assurance Services An Applied Approach
ISBN: 978-0073404004
1st edition
Authors: Iris Stuart
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