You are assigned as a staff auditor for a high growth technology company that is...
70.2K
Verified Solution
Link Copied!
Question
Accounting
You are assigned as a staff auditor for a high growth technology company that is in the process of planning for an IPO in 2 3 years. You are reviewing the sales of new technology and notice that sales growth is double digit and has increased considerably. Most of the sales occur in December (last month of the year). Management tells you that initial stock price is contingent on high sales growth. The CFO also confides in you that he is planning on retiring in a few years and is dependent on a high IPO stock price to make his retirement dreams come true in the next two years.
1.Are there any red flags regarding sales reporting? Explain.
2.What are the possible issues of concern based on the red flags?
3.Describe how you would alter the audit plan to address these issues?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.