Multiple Choice
Senior management of Mega Corp. is entitled to receive large bonuses if they achieve earnings targets. What is the effect of this on the risks associated with recording of revenue?
A) It increases inherent risks associated with revenue cutoff and existence assertions.
B) It increases inherent risks associated with revenue cutoff and completeness assertions.
C) It increases control risks associated with revenue cutoff and existence assertions.
D) It increases control risks associated with revenue cutoff and completeness assertions.
Correct Answer:
Verified
Correct Answer:
Verified
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