Prices for a rock concert are listed at $50 per ticket on EventBrite, but after

Question

Prices for a rock concert are listed at $50 per ticket on EventBrite, but after ticket selection, customers are led to a third party site (StubHub) where the ticket prices have climbed to over $500 per ticket for identical seats. Therefore, the best tickets are only sold through StubHub, a company which EventBrite owns. Due to the large number of complaints lodged by customers, an investigation into the ticket giant is being conducted, and you have been selected as an auditor. During the audit, do you think that you should analyze how revenues are being generated? Do you think you should also examine the business practices of EventBrite? Explain.

Explanation / Answer

As an auditor of the company i should also examine the business practices of the Eventbrite to review the test of controls of the organisation to ascertain whether the internal controls exists in the organisation and whether or not it is operating effectively or not . After examination of the internal controls as an auditor i could determine the nature , timing and extent of the substantive procedures within the organisation . If on the examination i could see that the internal controls are not effective than i need to extend my substantive procedures to find the material misstatements in the financial statements . I also need to check the revenue generation activities of the organisation because $50 ticket is being shown at a inflated price of $500 at a third party website .

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