Question: Your client pays a substantial bonus to managers when year - end sales revenues exceed goals. You understand that this presents a significant risk of

Your client pays a substantial bonus to managers when year

-

end sales revenues exceed goals. You understand that this presents a significant risk of the client recording transactions in the wrong financial period.

List two accounts that would be misstated if the client has engaged in this practice and the direction of their misstatement

(

.

.

overstated, understated

) .

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