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Marcus was assigned to review sale documents and freight bills to determine the amount of Freight, the terms of the sale, and the proper cutoff
Marcus was assigned to review sale documents and freight bills to determine the amount of Freight, the terms of the sale, and the proper cutoff treatment. During the course of his examination, Marcus discovered $2.4 million that was prematurely recognized as revenue by the accountants for the year ended December 31, 2020. He identified the problem by matching the invoices with corresponding freight bills and found that the shipping date of the transaction was January 2, 2021. However, there was a note signed by the freight forwarder. "picked up for shipment at Dunco warehouse on December 31, 2020." Question: Marcus Yamabuto is a staff internal auditor with virtually no real-world experience. he questions the appropriateness of recording the $2.4 million as earned revenue in 2010. He's not sure what to do, but does know one thing: he doesn't want to rock the boat. Given that Marcus is not a CPA, CMA, and he doesn't hold the CIA, why should he be concerned about the ethical standards in this case
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