View the video found here: Hollywood Studios Audit China Box-Office FiguresLinks to an external site.. Answer the following questions:
What events or agreements in 2015 indicated that audits between studios and the Chinese movie market would become more important?
What was the revenue sharing percentage prior to renegotiation of the 2015 WTO agreement?
According to the textbook, revenue recognition is more problematic with respect to audit inherent risks in some industries, as compared to others. Would this be the case in the movies industry in China? Why?
Revenue recognition in Chinese movie theaters is also problematic with respect to audit control risks. Why?
Please use the following links:
Main video to watch
https://www.bloomberg.com/news/videos/2017-06-28/hollywood-audits-china-box-office-figures-video
Helpful links for research
https://www.hollywoodreporter.com/movies/movie-news/hollywood-cheated-millions-at-china-box-office-mpaa-audit-finds-report-1045150/
https://www.bbc.com/news/blogs-china-blog-45318316
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