Pervasive Factors That Might Motivate Management to Misstate Purchases Process

Multiple Choice

Pervasive factors that might motivate management to misstate purchases process assertions include _______.

A) pressure to understate expenses in order to report achieving announced profitability targets or industry norms, which were not achieved in reality
B) pressure to understate payables in order to report a higher level of working capital when the entity is experiencing liquidity problems
C) pressure to understate payables in order to report a higher level of working capital when the entity is experiencing going concern doubts
D) All of these answer choices are correct