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AC 554 Unit 2 Special Exercise Updated

  • AC 554 Unit 2 Special Exercise Updated
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AC 554 Unit 2 Special Exercise Updated

A publically traded company, Lists Unlimited, is in the business of selling lists custom generated according to the needs of the customer. In 2001, the company recorded revenues of $150 million. List Unlimited revenues have grown at a rapid rate due to an unusual number of acquisitions the company made during the year 2000. Although the acquisitions have been integrated within List Unlimited’s business operations and structure, according practices–especially revenue cycles—remain separate for most acquired businesses. This is due to variations in conventions and practices unique to the line of business of acquired businesses. As director of the newly formed internal audit function, how would you approach the issue of diversity in revenue applications as you begin to address compliance with the Sarbanes-Oxley Act in the acquired businesses?

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