What is one of the ways that accounting is used to direct and control the manager of a corporation? a. Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision. b. Linking of a mangers performance to a bonus that depends on accounting profit. c. Making decisions based on the accounting information regardless of managerial input. d. Using income smoothing to assure a manager that they can invest in a low risk investment.

What is one of the ways that accounting is used to direct and control the manager of a corporation? a. Threatening to tell shareholders a mangers income if a manager makes a ‘poor financial’ decision. b. Linking of a mangers performance to a bonus that depends on accounting profit. c. Making decisions based on the accounting information regardless of managerial input. d. Using income smoothing to assure a manager that they can invest in a low risk investment.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.7: Bankrate, Inc.

Problem 2Q

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