Why would Commodore’s auditor insist that Rob document any sales booked under the book-and-hold technique

1. What are the ethical and legal implications of using accounting practices such as the book-and-hold technique to accelerate revenues and inflate corporate earnings?
2. Why would Commodore’s auditor insist that Rob document any sales booked under the book-and-hold technique?
3. If you were in Rob’s situation, would you agree to use the book-and-hold technique this month to accelerate revenues? Justify your decision.
4. Imagine that Commodore has taken out a multimillion-dollar loan that must be repaid next year. How might the lender react if it learned that Commodore was using the book-and-hold method to make revenues look higher than they really are?

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