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Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics 4th Edition Case 1.4 Page 20 5. Consult Paragraph 68 of PCAOB Auditing Standard

Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics 4th Edition

Case 1.4 Page 20

5. Consult Paragraph 68 of PCAOB Auditing Standard No. 12. Next, consider a customer that receives extraordinary discounts and terms to purchase merchandise at the end of the year (e.g., the wholesaler that purchased grills from Sunbeam). Do you believe that an auditor has an obligation to investigate these type of situations during revenue testing? Why or why not?

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