A friend of yours who is not an accountant heard a story on the news about revenue recognition fraud and doesn't understand what that means.
Research the Internet to find a relevant article about revenue recognition fraud from an accounting publication or authoritative source regarding revenue recognition fraud.
- Based on your research, explain what is meant by the GAAP terms recognition and earned.
- Based on your research, explain why revenue recognition is an area of significant concern as it relates to ethical behavior of management.
- If you were in the situation described, explain to your friend what you would have done to prevent or remedy the revenue recognition fraud.
- Include in-text citations and references where appropriate.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.