Question
You are engaged in the year-end audit of Raintree Distribution Inc. Raintree sells magazines to newsstands and other retailers with a one-month right of return.
You are engaged in the year-end audit of Raintree Distribution Inc. Raintree sells magazines to newsstands and other retailers with a one-month right of return. For example, a retailer can return magazines that are sold in December to Raintree for a full refund until the end of January of the next year. Raintree's year end is December31. On average, the amount of returns is considered material.
Question 1: what is the risk for the financial statement?
Question 2: what is the account and assertion thats impacted?
Question 3: what is the procedure to perform?
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