Addeco SA is the worlds largest temporary employment company. It lost several major accounts because customers felt

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Addeco SA is the world’s largest temporary employment company. It lost several major accounts because customers felt it was not adequately serving their complex staffing needs. It announced that it was not able to deliver its 2003 financial statements on schedule. Ernst & Young, its auditors, raised questions about accounting and controls as part of an intensive review of internal controls as mandated by the Sarbanes-Oxley Act. It appears that Addeco recorded revenue for temporary services provided during the first several weeks in January 2004 as 2003 revenue.

Required
Describe audit procedures that could be used to determine whether the revenue cutoff was improper.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Auditing a business risk appraoch

ISBN: 978-0324375589

6th Edition

Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston

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