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You are the audit junior on the Best BMW year-end financial statement audit. Best BMW sells luxury automobiles on Vancouver's posh west side. The company's year end is June 30. In the automobile industry, June is an important month to clear out old inventory and make way for the next year's models. As such, there are a number of promotions running then, and the sales people try hard to close deals before the end of the month.
Problem 1: What is the risk for the financial statements?
Problem 2: What is the account impacted and the audit assertion?
Problem 3: What are two procedures to perform?
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