If Auditors Believe Their Client Is Under Pressure to Smooth

question 34

Multiple Choice

If auditors believe their client is under pressure to smooth its income and not report any unexpected increases, which of the following risks are likely with regard to current income? (choose two options)

• A)Exclusion of revenues earned just before year-end
• B)Inclusion of expenses incurred after year-end
• C)Inclusion of revenues earned just before year-end
• D)Exclusion of expenses incurred after year-end