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Can you answer 41 and 42 please. Thank you. 41. How should auditors search for hidden liabilities? 42. A mid-sized company has a standard sales

Can you answer 41 and 42 please. Thank you. image text in transcribed
41. How should auditors search for hidden liabilities? 42. A mid-sized company has a standard sales contract, but sales personnel frequently modify the terms of the contract. The nature of the modifications can af- fect the timing and amount of revenue recognized. Individual sales transactions are frequently material to the entity, and the gross margin can vary signifi- cantly for each transaction

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