Case 2.1

INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE

Your1040Return.com

Evaluating eBusiness Revenue Recognition,

C A S E

2.1

Information Privacy, and Electronic Evidence Issues

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt

INSTRUCTIONAL OBJECTIVES

[1] To illustrate business risks for Internet-only

business models.

[2] To help students develop skills related to

identifying internal control responses to

eBusiness risks.

[3] To highlight revenue recognition issues related

to eBusiness transactions.

[4] To illustrate unique accounting issues associated

with Internet web site banner advertisements.

KEY FACTS

[5] To help students identify privacy issues

associated with Internet-based business models.

[6] To illustrate audit implications when transaction

audit trails are solely electronic.

[7] To expose students to the benefits of cloud

computing

[8] To help students recognize threats to eBusiness

strategies.

ƒƒ Your1040Return.com is a leading provider of online income tax preparation and filing services

for individual taxpayers.

ƒƒ The company was founded two years ago by Steven Chicago who realized individuals may be

frustrated with the need to purchase tax preparation software upgrades each year to ensure their tax software reflects recent changes in the tax code.

ƒƒ Your1040Return.com’s strategy is to provide up-to-date tax preparation software that can be

accessed through the Internet by individuals who pay membership fees for that access.

ƒƒ In essence, Your1040Return.com’s customers “rent” access to tax preparation software packages

that are continually kept up-to-date with the latest tax law changes. Customers can also use

Your1040Return.com’s services to electronically file an already prepared paper-based tax return. ƒƒ Customers can use Your1040Return.com to file both state and federal tax returns.

ƒƒ Your1040Return.com customers select...