5. What are the differences between US GAAP, SEC and IFRS criteria for revenue recognition? 6. When testing sales transactions, why do you select half of the transactions from the sales register and half from shipping documents? 7. When you test a shipping document, what are you checking for? 8. When you test an invoice, what are you checking for? Imagine your client's AR turnover is up. What is a favorable development that might have taused it? What is an unfavorable development that might have caused it? 10. What are the biggest risks in the acquisition and expenditure process? 11. How is auditing the acquisition and expenditure process qualitatively different from the revenue recognition process? 12. Describe three scenarios to explain credit entries in expense accounts. How would you audit these to determine if they are legitimate? 13. What are some ways to find unrecorded liabilities? 14. Why would classification of expenses, but not a change in the total, be a source of fraud? 15. Describe a potential misstatement if vendor invoices are not matched with receiving documents. How would you find it during an audit? 16. Describe a potential misstatement if purchase orders or receivers are unmatched at year end? How would you find it during an audit? 17. Describe a potential misstatement or fraud scheme involving paying a correct vendor for a real shipment. How would you find it during an audit? 18. How do you determine if assets should be capitalized or not? 19. Which accounts are the most vulnerable in the expenditure business process? Why