Question: (1) What do we mean by revenue recognition? What does GAAP say about proper revenue recognition? (2) Why is the audit of revenue recognition riskier

(1) What do we mean by revenue recognition? What does GAAP say about proper revenue recognition?

(2) Why is the audit of revenue recognition riskier for a new company?

(3) What are some justifications for not using confirmations of accounts receivable on a particular audit?

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