Apply the five-step revenue recognition model to Apple's iPhone sale. Briefly explain a specific audit procedure you would use to audit each step. NOTE: I am not asking how Apple will account for this transaction. I am asking how you will audit Apple's accounting process for this transaction. a. Identify the contract with the customer b. Identify the performance obligations c. Determine transaction price d. Allocate price to performance obligations e. Revenue recognition when obligation satisfied

Apply the five-step revenue recognition model to Apple's iPhone sale. Briefly explain a specific audit procedure you would use to audit each step. NOTE: I am not asking how Apple will account for this transaction. I am asking how you will audit Apple's accounting process for this transaction. a. Identify the contract with the customer b. Identify the performance obligations c. Determine transaction price d. Allocate price to performance obligations e. Revenue recognition when obligation satisfied