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

Exercise 4

Consult Paragraphs 52-53 of PCAOB Auditing Standard No. 12. Consider how a revenue recognition fraud might occur under Enron's strategy in the late 1990s. Next, identify an internal control procedure that would prevent, detect, or deter such a fraudulent scheme.