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Management demands financial success.
Poor internal control.
Commitments tied to debt covenants.
Management is aggressive in its application of accounting rules.
50. Sam Jones, controller of Mitnikco, spends three days researching
the accounting statements to find loopholes in the "rules" and to make
a case for recognizing revenue earlier, rather than in later years. In
the end, Sam and the other members of management determine that
they will reduce the company's deferred revenue accounts and begin
accounting for all revenues as agreements are signed. What are the
motivations of Mitnikco management based solely on the information
above? (Points: 4)
Pressures
Opportunity
Rationalization
Skepticism
51. Sampling risk is the risk that (Points: 4)
the sample will not contain characteristics representative of the
population such that inferences made about that population will be
incorrect.