Problem:
In 2008, Harley-Davidson was accused of inflating sales by recording revenue when shipments were delivered to dealers, instead of when merchandise was sold to customers. Describe the analytical procedure(s) that could have been used to identify the overstatement of accounts receivables and sales. Recommend at least two ways to plan an audit to test for the accuracy of sales, and discuss the types of exception reports needed. Recommend at least two analytical procedures for collecting evidence to ensure compliance with the controls. Provide detailed recommendations.