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The following article was published in Newsday on February 9, 2009: Call for Probe of Ticket Sales Bruce Springsteen fans were victims of a "classic bait and switch" scam by the nation's largest concert ticket seller, Senator Charles Schumer said yesterday, as he called for a federal investigation into the company, Ticketmaster. Schumer wants the Federal Trade Commission to look into whether the Ticketmaster website withheld the best tickets from the public and then shuttled fans to TicketsNow, a fully owned subsidiary. TicketsNow had the best seats available immediately-at sky-high prices-after Springsteen tickets went on sales at 10 a.m. on February 2.
Required:
problem . During the course of an audit, do you believe that the auditor should look into how revenues are being generated? Do you think the auditors should have looked at the business practices of Ticketmaster?
problem b. Assume that Ticketmaster had properly accounted for the revenue it received from the Springsteen concert. Should the auditors have asked Ticketmaster to make adjustments or disclosures regarding its sales practices?
problem c. Should Ticketmaster disclose the investigations being conducted in Connecticut and New Jersey?
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