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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.
the population will not contain characteristics representative of
the sample such that inferences made about that sample will be
incorrect.
Neither A nor B is correct.
Both A and B are correct.
52. The sample size varies directly with (Points: 4)
the expected failure rate.
the tolerable error rate.
the allowable risk of assessing control risk too low.
the nonsampling risk