Photo Lighting Supply, Inc.: An Auditing Case Study
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Keywords
auditing, accounting
Abstract
Photo Lighting Supply, Inc. (PLS) is a small manufacturer of tungsten and strobe studio and location photography lighting. This case requires students to consider the accounting matching principle, materiality, audit procedures for bonus payments, letters of representation, and planning and supervision. This case is appropriate for an introductory auditing class used near the end of the term, or used at any time in an advanced auditing class. The requirements of the case necessitate students consult several sections of the accounting and auditing standards. With the CPA Examination having moved to a computerized format, candidates will be required to use electronic accounting and auditing databases. This case requires students to search the standards to prepare their solution to the case.