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The following is adapted from an 8-K filed by Sonoma Pharmaceuticals on Tuesday (November 17, 2020): It was determined that the certain financial transactions on
The following is adapted from an 8-K filed by Sonoma Pharmaceuticals on Tuesday (November 17, 2020): It was determined that the certain financial transactions on the profit and loss statement were run twice for one month which resulted in an overstatement of revenue. At this time, we estimate that these errors resulted in accounts receivable being overstated by $446,000.- Required: a. What accounts and assertions were misstated as a result of this misstatement? Fully explain. b. Fully explain how an auditor could detect such a misstatement. +
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