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:

Unauthorized Cards

Payment cards such as credit or debit cards used without the consent or authorization of the cardholder, often resulting in fraudulent transactions.

Counterfeiting

The act of making an imitation of an object, typically money or branded goods, with the intent to deceive.

Redlining

A discriminatory practice by which services (like banking and insurance) are withheld from potential customers in certain neighborhoods based on racial or ethnic composition.

Gramm-Leach-Bliley Financial Modernization Act

A U.S. federal law enacted in 1999 to control the ways that financial institutions deal with the private information of individuals.