Question: Refer to the Professional Judgment in Context feature How to Account for Virtual Sales at Zynga. Answer the following questions: a. What are the inherent
Refer to the Professional Judgment in Context feature "How to Account for Virtual Sales at Zynga." Answer the following questions:
a. What are the inherent risks associated with the revenue transactions at Zynga?
b. What are management's incentives to misstate revenue transactions?
c. What controls should Zynga management have in place to mitigate the risks associated with revenue transactions?
d. How might auditors use preliminary analytical procedures to identify any potential concerns with Zynga's revenue?
e. What is sufficient appropriate evidence when auditing Zynga's revenue transactions?
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a Revenue is an inherently risky account as the transactions making up the account can be quite complex and subject to client judgment In the case of ... View full answer
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