View the video found here: Ch 11: Business Video: Hollywood Studios Audit China Box-Office Figures. Answer the following questions:
1. What events or agreements in 2015 indicated that audits between studios and the Chinese movie market would become more important?
2. What was the revenue sharing percentage prior to renegotiation of the 2015 WTO agreement?
3. 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?
4. Revenue recognition in Chinese movie theaters is also problematic with respect to audit control risks. Why?
Note: You may perform some research to support your answer. Some helpful links are included below.
• Brzeski, P. (2017). Hollywood Cheated of Millions at China Box Office, MPAA Audit Finds (Report) (Links to an external site.). Hollywood Reporter.com, Oct. 3.
• McDonell, S. (2018). Movie madness: Why Chinese cinemas are empty but full. (Links to an external site.) BBC.com, August 31 .
• Tartaglione, N. (2019). China Box Office Growth Slows In 2018; Tricky Balancing Act Ahead For 2019. (Links to an external site.) Deadline.com, Jan. 3.
What events or agreements in 2015 indicated that audits between studios and the Chinese movie market would become more important?
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