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Frank Dorrance, a senior audit manager for Bright and Lorren, a public accounting firm, has recently been informed that the firm hopes to promote him to partner within the next year or two. Frank excels at dealing effectively with all people, including client personnel, professional staff, partners, and potential clients. He has recently built a bigger home for entertaining and has joined the city’s most prestigious golf and tennis club. He

is excited about his future with the firm.

Frank has recently been assigned to the audit of Machine International Corp., a large wholesale company that ships goods throughout the world. It is one of Bright and Lorren’s most prestigious clients. During the audit, Frank determines that Machine International Corp. uses a method of revenue recognition called “bill and hold,” which has been questioned by the Ontario Securities Commission (OSC). After considerable research, Frank concludes that the method of revenue recognition is not appropriate for Machine International Corp.


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