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.

Answered: If factory workers are paid based on…

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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Question

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.