In a situation where the auditor is evaluating a decision made with regards to the recording of an unusual revenue transaction, the auditor should step back and determine if the recording of the revenue is in accordance with accounting standards.

Question

Quizplus · Accepted Answer

It is important for the auditor to first determine if the recording of the revenue is in accordance with accounting standards before evaluating any decision made regarding the transaction. This ensures that the decision made was based on accurate information and compliant with the relevant accounting principles.

In a Situation Where the Auditor Is Evaluating a Decision