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need help..audit 1. For each control deficiency below, indicate whether is abs y, material weakness or neither. Justify your decision and Indicate to who if
need help..audit
1. For each control deficiency below, indicate whether is abs y, material weakness or neither. Justify your decision and Indicate to who if anvons it has reported to IJK Company has a standard sales contract, but sales personnel frequently modify the terms of the contract. The nature of the modification can affect the timing and amount revenue recognized. Individual sales transactions are frequently material to the entity, and gross margin can vary significantly for each transaction. The entity does not have procedures in place for the accounting function to regularly review modifications to sale contract terms. Although management reviews gross margins on a monthly basis, the significant differences in gross margins on individual transactions make it difficult for management to identify potential misstatements. Improper revenue recognition has occurred, and the amounts have been material. c Step by Step Solution
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