Senior Management of Mega Corp

question 13

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.

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Definitions:

Evisceration

The medical condition where internal organs protrude through a wound or surgical incision in the skin.

Dehiscence

The splitting open or rupture of a wound along surgical incision lines, often due to incomplete healing.

Internal Viscera

The internal organs of the body, especially those within the chest and abdomen, including the heart, lungs, liver, and others.

Hypertensive Medication

Drugs prescribed to manage and control high blood pressure, aiming to prevent cardiovascular diseases.