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 .