Search.com is an Internet-based dating agency. Its business model is that anyone can search its website and
Question:
Search.com is an Internet-based dating agency. Its business model is that anyone can search its website and review for free the profiles of people looking for friends or partners, but if anyone wants to post their profile or a message, or make contact with another person, they must pay a fee. In addition, it charges advertisers when a user "hits" the site while their advertisement is displayed; it charges a higher fee if the user follows a link to an advertiser's website.
The problem with this model is that Search.com needs profiles on its website to encourage people to visit the site, so it has offered some special deals to encourage people to post their profiles. These offers include substantial discounts, even waiving the fee entirely for people who meet certain criteria (for example, an attractive male under the age of 35).
Holly, the engagement partner on the audit of Search.com, has some doubts about the revenue numbers claimed by Search.com in its trial balance. She suspects that some of the profiles are fictitious and the advertising revenue is overstated.
Required
What could Holly do to audit the revenue claimed by Search.com?
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Revenue for Searchcom is generated when members post a profile or message or make contact with anoth...View the full answer
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