ABSTRACT: The purpose of this project is to help students apply auditing procedures that pertain to revenue recognition. In particular, students gain a better understanding of (1) the importance of management's occurrence, accuracy, and cutoff assertions regarding revenue; (2) the relationship between an auditing procedure and an audit objective; (3) how to perform an audit procedure; and (4) how to create audit work papers. The project includes four types of revenue misstatements. Students must design a procedure to detect misstatement, and then determine how to best use supporting documents to provide evidence that recorded sales actually occurred and are recorded at the correct value in the correct reporting period. All supporting documents for this project are stored on the Internet for easy access. This project requires very little class time and the time required of students is very reasonable. Students can also conveniently complete the project anywhere they have access to the Internet.
Research Article| February 01 2009
Vouch and Trace: A Revenue Recognition Audit Simulation
Charles R. (Tad) Miller, Professor;
Issues in Accounting Education (2009) 24 (1): 93–103.
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Charles R. (Tad) Miller, Arline Savage; Vouch and Trace: A Revenue Recognition Audit Simulation. Issues in Accounting Education 1 February 2009; 24 (1): 93–103. doi: https://doi.org/10.2308/iace.2009.24.1.93
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