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 . 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 .