1. Describe the FASB's rules or standard on revenue recognition. Where do we find the FASB's revenue recognition standard? Why is it important for an auditor that will audit sales to understand the revenue recognition standard?

2. Explain the basic processes involved in documenting revenue transactions as a part of the audit on sales.

3. Explain the basic processes involved in documenting collections for revenue transactions as a part of the audit on sales and collections.

4. Explain the process to document the details of revenue transactions explain the documents, the purpose for each document and the information that each document contains.

5. Describe the steps that auditors use to test controls over sales and collections.

6. What is statistical sampling? What is non-statistical sampling? Explain the strengths and weaknesses of each approach.

7. Explain non-sampling risk. Give an example and explain how it relates to auditing.