Part I: Written Deliverable
In approximately 2 pages (single-spaced), please answer the following questions regarding the account
you’ve selected from the list above.
a) Briefly describe the U.S. Generally Accepted Accounting Principles relevant to the revenue
account (e.g., when is revenue recognized?).
b) Review the guidance provided by the Generally Accepted Auditing Standards (PCAOB and
AICPA standards) related to auditing the revenue account. Describe procedures that would be
useful to test the relevant assertions.
a. PCAOB Auditing Standards: https://pcaobus.org/oversight/standards/auditing-standards
b. AICPA Statements on Auditing Standards:
https://www.aicpa.org/research/standards/auditattest/clarifiedsas.html
c) Using the most recent 10-K, describe the information provided by the Clorox Company regarding
the revenue account. What is the year-end balance? How does it compare to the prior-year
balance? What risks are associated with the revenue account from an audit perspective? Have
recent events from COVID-19 significantly impacted the revenue account balance in any way?
Part II: 3 Minute Presentation
For the presentation, please share the information specific to the Clorox Company from Part I (i.e.,
section (c) above – it is not necessary to include discussion of GAAP or GAAS). Discuss the nature of
the Revenue account, balance fluctuations, and risks identified. In addition, please include a brief analysis of the Revenue account as compared to that of a close competitor. An example you can use is Procter & Gamble.
*** Since we are in a remote format, you will need to create a script of what you would have presented to the class, hitting on all the topics mentioned in the paragraph above. You must time yourself reading it aloud and make sure it hits a ballpark of 3 minutes. This should be roughly a page, give or take single spaced.

DETAILED ASSIGNMENT

20210318053727auditcase2revenuecc