The Revenue Cycle

Read Case 2.3, “Happiness Express, Inc.,” in Contemporary Auditing. How should the auditor have audited this client’s
revenue transactions?
With these thoughts in mind:
Write at least 200 words answering the following questions:
•What factors influenced the audit risk of this audit?
•What management assertions are important at the account level in the revenue cycle?
•What internal controls could have prevented the misstatement? What audit tests could have tested those internal controls?
•What mistakes did the auditor make?
•What other audit procedures could the auditor have implemented to avoid these mistakes?