A Computer Software Firm Allows Its Sales Team to Make

question 69

Multiple Choice

A computer software firm allows its sales team to make material modifications to standard software contracts.What should be the auditors' primary concern in this situation?

• A)Increased risk of misstatement of commissions expense.
• B)Increased risk of misstatement of revenue.
• C)Increased risk of uncollectible accounts.
• D)Increased risk of loss of software copyright.

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Definitions:

Extrinsic Rewards

Extrinsic rewards refer to tangible rewards given by an external source, such as money, prizes, or other benefits, used as motivation for performing certain tasks or behaviors.

Intrinsic Rewards

Non-material rewards that come from within an individual, such as personal satisfaction or joy from completing a task or learning something new.

Novel Ideas

Innovative or original thoughts and concepts that have not been previously conceived or fully explored.

Innovation

The process of developing and implementing new ideas in an organization.