Your audit client is a company that produces wheat, flour, and other bakery products. As with many other businesses, the company has been finding it extremely difficult to recruit and retain skilled factory staff. As a result, it has decided that staff in the most difficult-to-retain award categories will be rewarded with annual bonuses. These are calculated using relatively complex formula that takes into account the employee's length of service, award rate, seniority and estimated contribution to profit.

Using the above information, the risk you, as auditor, would be most concerned about is :

A. There is a risk that the Provision for annual bonus will be misstated by the company due to difficulties in the formula to employees who have already left the company's employment.

B. There is risk that provision for annual bonus calculated by the company will be understated due to difficulty in performing the calculation, taking into account a number of variables.

C. There is a risk that wages expense will be understated due to the company underpaying certain employees so that it has sufficient funds to pay annual bonuses to staff in difficult-to-retain award categories.

D. There is a risk that provision for annual bonus calculation will be understated due to management's manipulation of the provision account as part of earnings management techniques.

Using the above information, the assertion you, as auditor, would be most concerned about is :

A.Completeness

B.Classification

C.Accuracy, valuation and allocation

D.Accuracy