Book publishing company is a company that publishes and promotes science fictions books. Financial analyst has been saying that this company has a great year ahead since some of its books become U.S. top seller in the bookstores. Recently, the company issued 2016 audit report and it has been recording purchase order from clients as revenues before the invoices are issued.

Based on above scenario:

1. Identify the error made in the financial report and explain what are the duties and responsibilities of an accountant?

2. What necessary actions auditor will suggests to rectify it?