a) 1

b) 3

c) 4

d) 6

e) 5

f) 2
a. Since the goods were
shipped on December 31,
the sale should be
recognized in
2015. Because the
inventory balance at 31
Dec 2015 was included this
shipment,
the adjusting entry is:
COGS 2,000
Inventory 2,000
b. This transaction is
correctly recorded. No
adjusting entry.
c. This transaction is
correctly recorded. No
adjusting entry.
d. The sale should be
recorded in 2016 since the
goods were shipped on
January 9.
The adjusting entry should
be made:
Accounts Receivable
(4,000)
Sales (4,000
a. Since the goods were
shipped on December 31,
the sale should be
recognized in
2015. Because the
inventory balance at 31
Dec 2015 was included this
shipment,
the adjusting entry is:
COGS 2,000
Inventory 2,000
b. This transaction is
correctly recorded. No
adjusting entry.
c. This transaction is
correctly recorded. No
adjusting entry.
d. The sale should be
recorded in 2016 since the
goods were shipped on
January 9.
The adjusting entry should
be made:
Accounts Receivable
(4,000)
Sales (4,000
a. Since the goods were
shipped on December 31,
the sale should be
recognized in
2015. Because the
inventory balance at 31
Dec 2015 was included this
shipment,
the adjusting entry is:
COGS 2,000
Inventory 2,000
b. This transaction is
correctly recorded. No
adjusting entry.
c. This transaction is
correctly recorded. No
adjusting entry.
d. The sale should be
recorded in 2016 since the
goods were shipped on
January 9.
The adjusting entry should
be made:
Accounts Receivable
(4,000)
Sales (4,000
a. Since the goods were
shipped on December 31,
the sale should be
recognized in
2015. Because the
inventory balance at 31
Dec 2015 was included this
shipment,
the adjusting entry is:
COGS 2,000
Inventory 2,000
b. This transaction is
correctly recorded. No
adjusting entry.
c. This transaction is
correctly recorded. No
adjusting entry.
d. The sale should be
recorded in 2016 since the
goods were shipped on
January 9.
The adjusting entry should
be made:
Accounts Receivable
(4,000)
Sales (4,000
1. Your client, Thomson
Telecom, maintains an
inventory of
telecommunications equipment.
Bayone Telephone Company
placed an order for 10 new
transformers valued at €5
million and
Thomson delivered them just
prior to 31 December.
Thompson’s normal business
practice for
this class of customer is to enter
into a written sales agreement
that requires the signatures of
all
the authorized representatives
of Thomson and its
customer before the contract
is binding.
However, Bayone has not
signed the sales agreement
because it is awaiting the
requisite approval
by the legal department.
Bayone’s purchasing
department has orally agreed to
the contract and
the purchasing manager has
assured you that the contract
will be approved the first week
of next
year.
The audit evidence that should be
obtained would be the sales
agreement that contains the
authorizing
signatures from both Thomson
Company and Bayone. According
to IFRS 115, Revenue should only
be
recognized when a contract forms
between the two parties. Even
though Thomson has delivered the
machines to Bayone, currently
there is only an oral agreement
between the two parties and
Thomson
has not received payment for the
goods delivered
2. Best Products is a retailer of
appliances that offers ‘layaway’
sales to its customers twice a
year. Best retains the
merchandise, sets it aside in its
inventory and collects a cash
deposit from
the customer. The customer
signs an instalment note at the
time the initial deposit is
received, but
no payments are due until 30
days after delivery.
The appropriate audit evidence
would be subsequent payment
from the customer by reconciling
the
instalment note and the bank
statement/cash book. Revenue
should only be recognized when
payment
if made by the customer 30days
later.
3. Dave’s Discount Stores
is a discount retailer that
generates revenue from the
sale of
membership fees it charges
customers to shop at its
stores. The membership
arrangement
requires the customer to pay the
entire membership fee (usually
€48) at the beginning of the
arrangement. However, the
customer can unilaterally cancel
the membership arrangement
and
receive a refund of the unused
portion. Dave’s Discount Stores
estimates that 35 per cent of the
customers will cancel their
memberships before the end of
the contract.
The appropriate audit evidence
would be the membership fee
revenue at the end of the period
after
accounting for cancelled
memberships. Revenue should
only be recognized at the end of
the contract if
the customers do not cancel their
membership
1. Your client, Thomson
Telecom, maintains an
inventory of
telecommunications equipment.
Bayone Telephone Company
placed an order for 10 new
transformers valued at €5
million and
Thomson delivered them just
prior to 31 December.
Thompson’s normal business
practice for
this class of customer is to enter
into a written sales agreement
that requires the signatures of
all
the authorized representatives
of Thomson and its
customer before the contract
is binding.
However, Bayone has not
signed the sales agreement
because it is awaiting the
requisite approval
by the legal department.
Bayone’s purchasing
department has orally agreed to
the contract and
the purchasing manager has
assured you that the contract
will be approved the first week
of next
year.
The audit evidence that should be
obtained would be the sales
agreement that contains the
authorizing
signatures from both Thomson
Company and Bayone. According
to IFRS 115, Revenue should only
be
recognized when a contract forms
between the two parties. Even
though Thomson has delivered the
machines to Bayone, currently
there is only an oral agreement
between the two parties and
Thomson
has not received payment for the
goods delivered
2. Best Products is a retailer of
appliances that offers ‘layaway’
sales to its customers twice a
year. Best retains the
merchandise, sets it aside in its
inventory and collects a cash
deposit from
the customer. The customer
signs an instalment note at the
time the initial deposit is
received, but
no payments are due until 30
days after delivery.
The appropriate audit evidence
would be subsequent payment
from the customer by reconciling
the
instalment note and the bank
statement/cash book. Revenue
should only be recognized when
payment
if made by the customer 30days
later.
3. Dave’s Discount Stores
is a discount retailer that
generates revenue from the
sale of
membership fees it charges
customers to shop at its
stores. The membership
arrangement
requires the customer to pay the
entire membership fee (usually
€48) at the beginning of the
arrangement. However, the
customer can unilaterally cancel
the membership arrangement
and
receive a refund of the unused
portion. Dave’s Discount Stores
estimates that 35 per cent of the
customers will cancel their
memberships before the end of
the contract.
The appropriate audit evidence
would be the membership fee
revenue at the end of the period
after
accounting for cancelled
memberships. Revenue should
only be recognized at the end of
the contract if
the customers do not cancel their
membership
1. Your client, Thomson Telecom, maintains an inventory of telecommunications equipment.Bayone
Telephone Company placed an order for 10 new transformers valued at €5 million andThomson
delivered them just prior to 31 December. Thompson’s normal business practice forthis class of
customer is to enter into a written sales agreement that requires the signatures of allthe authorized
representatives of Thomson and its customer before the contract is binding.However, Bayone
has not signed the sales agreement because it is awaiting the requisite approvalby the legal department.
Bayone’s purchasing department has orally agreed to the contract andthe purchasing manager has
assured you that the contract will be approved the first week of nextyear.

1. Khách hàng của bạn, Thomson Telecom, đang duy trì một kho thiết bị viễn thông. Công ty Điện
thoạiayone đã đặt hàng 10 máy biến áp mới trị giá 5 triệu Euro và Thomson đã giao chúng ngay trước
ngày 31 tháng 12. Thông lệ kinh doanh thông thường của Thompson đối với loại khách hàng này là ký
kết một thỏa thuận bán hàng bằng văn bản yêu cầu chữ ký của tất cả các đại diện được ủy quyền của
Thomson và khách hàng của nó trước khi hợp đồng có hiệu lực sự chấp thuận của bộ phận pháp lý. Tuy
nhiên, bộ phận mua hàng của Bayone đã đồng ý bằng miệng với hợp đồng và người quản lý mua hàng
đã đảm bảo với bạn rằng hợp đồng sẽ được phê duyệt vào tuần đầu tiên của năm mới.

 The audit evidence that should be obtained would be the sales agreement that contains the
authorizing signatures from both Thomson Company and Bayone. According to IFRS 115, Revenue
should only berecognized when a contract forms between the two parties. Even though Thomson has
delivered themachines to Bayone, currently there is only an oral agreement between the two parties
and Thomsonhas not received payment for the goods delivered

Bằng chứng kiểm toán cần thu thập sẽ là hợp đồng mua bán có các ký hiệu ủy quyền từ cả Công ty
Thomson và Bayone. Theo IFRS 115, Doanh thu chỉ nên được ghi nhận khi hợp đồng hình thành giữa hai
bên. Mặc dù Thomson đã giao máy móc cho Bayone nhưng hiện tại giữa hai bên chỉ có thỏa thuận
miệng và Thomson chưa nhận được tiền thanh toán tiền hàng đã giao.

2. Best Products is a retailer of appliances that offers ‘layaway’ sales to its customers twice a year. Best
retains the merchandise, sets it aside in its inventory and collects a cash deposit from the customer. The
customer signs an installment note at the time the initial deposit is received, but no payments are due
until 30 days after delivery.

2. Best Products là một nhà bán lẻ các thiết bị cung cấp dịch vụ bán hàng ‘tạm dừng’ cho khách hàng của
mình hai lần một năm. Tốt nhất giữ lại hàng hóa, đặt nó sang một bên trong kho của mình và thu một
khoản tiền mặt từ khách hàng. Khách hàng ký giấy trả góp tại thời điểm nhận được tiền đặt cọc ban đầu,
nhưng không có khoản thanh toán nào đến hạn sau 30 ngày kể từ ngày giao hàng.

 The appropriate audit evidence would be subsequent payment from the customer by reconciling the
instalment note and the bank statement/cash book. Revenue should only be recognized when payment
if made by the customer 30days later
Bằng chứng kiểm toán thích hợp sẽ là khoản thanh toán tiếp theo của khách hàng bằng cách đối chiếu
giấy trả góp và bảng sao kê / sổ quỹ ngân hàng. Doanh thu chỉ được ghi nhận khi thanh toán nếu khách
hàng thực hiện sau 30 ngày

3. Dave’s Discount Stores

is a discount retailer that
generates revenue from the
sale of
membership fees it charges
customers to shop at its
stores. The membership
arrangement
requires the customer to pay the
entire membership fee (usually
€48) at the beginning of the
arrangement. However, the
customer can unilaterally cancel
the membership arrangement
and
receive a refund of the unused
portion. Dave’s Discount Stores
estimates that 35 per cent of the
customers will cancel their
memberships before the end of
the contract.
The appropriate audit evidence
would be the membership fee
revenue at the end of the period
after
accounting for cancelled
memberships. Revenue should
only be recognized at the end of
the contract if
the customers do not cancel their
membership.
3. Dave’s Discount Stores is a discount retailer that generates revenue from the sale of
membership fees it charges customers to shop at its stores. The membership arrangement
requires the customer to pay the entire membership fee (usually €48) at the beginning of the
arrangement. However, the customer can unilaterally cancel the membership arrangement and receive
a refund of the unused portion. Dave’s Discount Stores estimates that 35 per cent of the customers will
cancel their memberships before the end of the contract.

3. Cửa hàng giảm giá của Dave là một nhà bán lẻ giảm giá tạo ra doanh thu từ việc bán phí thành viên
mà họ tính cho khách hàng đến mua sắm tại các cửa hàng của mình. Thỏa thuận thành viên yêu cầu
khách hàng thanh toán toàn bộ phí thành viên (thường là 48 €) khi bắt đầu thỏa thuận. Tuy nhiên, khách
hàng có thể đơn phương hủy bỏ việc sắp xếp thành viên và được hoàn lại phần tiền chưa sử dụng. Các
Cửa hàng Giảm giá của Dave ước tính rằng 35% khách hàng sẽ hủy bỏ tư cách thành viên của họ trước
khi kết thúc hợp đồng.

 The appropriate audit evidence would be the membership fee revenue at the end of the period after
accounting for cancelled memberships. Revenue should only be recognized at the end of the contract if
the customers do not cancel their membership.

Bằng chứng kiểm toán thích hợp sẽ là doanh thu phí thành viên vào cuối kỳ sau khi hạch toán các tư
cách thành viên bị hủy bỏ. Doanh thu chỉ được ghi nhận khi kết thúc hợp đồng nếu khách hàng không
hủy tư cách thành viên.