Question: The external audit team for ABC Industrials is looking for potential revenue-related financial statement manipulation. Which of the following analytical symptoms may be indicative of
The external audit team for ABC Industrials is looking for potential revenue-related financial statement manipulation. Which of the following analytical symptoms may be indicative of revenue manipulation?
A. Untrue responses by management to queries about revenue-related accounts.
B. Missing documents in the revenue cycle.
C. An unusual number of journal entries made at the end of the accounting period that increase revenues.
D. Significant bonuses tied to meeting earnings forecasts.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
