If factory workers are paid based on time and/or productivity, there is likely high inherent risk for which of the following key assertions?     M. Accuracy     N. Cutoff     O. Completeness     P. None of the answer choices is correct.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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  1. If factory workers are paid based on time and/or productivity, there is likely high inherent risk for which of the following key assertions?
       
    M. Accuracy
       
    N. Cutoff
       
    O. Completeness
       
    P. None of the answer choices is correct.
Expert Solution
Step 1: Introduction:

In the context of auditing, key assertions are claims made by management regarding the company's financial statements. These assertions are tested by auditors to ensure their accuracy and reliability. When factory workers are paid based on time and/or productivity, there could be inherent risks associated with certain key assertions. Let's examine each option in detail.


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