Auditing and Accounting Cases 4th Edition by Deborah Freier,Jay Thibodeau

Exercise 5

Consult Paragraph 68 of PCAOB Auditing Standard No. 12. Next, consider a customer that receives extraordinary discounts and terms to purchase merchandise at the end of the year (e.g., the wholesaler that purchased grills from Sunbeam). Do you believe that an auditor has an obligation to investigate these type of situations during revenue testing? Why or why not?