A friend of yours who is not an accountant heard a story on the news about revenue recognition fraud and doesn't understand what that means.

Research the Internet to find a relevant article about revenue recognition fraud from an accounting publication or authoritative source regarding revenue recognition fraud.

• Based on your research, explain what is meant by the GAAP terms recognition and earned.

• Based on your research, explain why revenue recognition is an area of significant concern as it relates to ethical behavior of management.

• If you were in the situation described, explain to your friend what you would have done to prevent or remedy the revenue recognition fraud.

• Include in-text citations and references where appropriate

• Understand the concepts of income, explain the conceptual guidelines for reporting income, and define the elements of an income statement.

• Discuss the impact of technology on business and effective communication techniques and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

• Understand capital markets and decision making, explain what is included in financial reporting, and discuss generally accepted accounting principles (GAAP) and the sources of GAAP.