Question
You do not have concerns about management's integrity, but you know that management's compensation is partially determined by meeting aggressive revenue targets. How would you
You do not have concerns about management's integrity, but you know that management's compensation is partially determined by meeting aggressive revenue targets. How would you consider this information in the audit risk model?
Question 3 options:
A - increase acceptable audit risk for the audit and decrease inherent risk for sales
B - reduce acceptable audit risk for the audit and decrease inherent risk for sales
C - reduce acceptable audit risk for the audit and increase inherent risk for sales
D - increase acceptable audit risk for the audit and increase inherent risk for sales
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