If Management and Salespeople Are Compensated on the Basis of Achieving

question 10

Multiple Choice

If management and salespeople are compensated on the basis of achieving high sales targets,there is increased incentive to record sales before they have been earned.In such a situation,the auditor will increase the extent of testing for which of the following transaction-related audit objectives for sales?

• A)cut-off and classification
• B)classification and occurrence
• C)occurrence and cut-off
• D)completeness and cut-off

---

Definitions:

Hypothetical Open Questions

Queries that propose a theoretical situation, encouraging respondents to think and speculate about possible answers or outcomes.

Specific Questions

Targeted inquiries designed to elicit detailed or particular pieces of information, as opposed to general or open-ended questions.

Off Guard

A state of being unprepared or unsuspecting, often leading to vulnerability.

Orientation

The process of familiarizing new employees or members with an organization's policies, procedures, culture, and goals.