Orion co-ordinates regular events such as dinner parties, sporting events, ski trips, and wine tastings. Orion is
Question:
Orion co-ordinates regular events such as dinner parties, sporting events, ski trips, and wine tastings. Orion is responsible for identifying events that are of interest to clients, securing spaces at the events, and then promoting the events to its clients. Venues will often put on events specifically to meet Orion's needs if a minimum number of clients can be guaranteed. Clients pay the fees in advance to Orion and attend as part of the group. For example, a recent wine tasting cost $100 per person and Orion charged its customers $125 per person to attend. Orion booked an expense of $100 for each client for the fee paid to the venue and recorded $125 in revenue for the amount collected from participants (fee + Orion's standard 25% markup). Some of the clients at the winetasting were unhappy with the quality of the wines and complained. Fortunately, the venue provided them with a coupon for a future visit as a gesture of goodwill. Orion is not responsible for addressing customer concerns related to the venues selected. During 2022, Orion has recorded $23,000 in revenue and $18,400 in expenses related to the Socialize in Charlottetown Series.
Sasha has asked you to discuss any accounting issues that you identify, and provide valid audit procedures addressing each of the significant accounting issues and the risks they pose.
Principles of Information Systems
ISBN: 978-0324665284
9th edition
Authors: Ralph M. Stair, George W. Reynolds