- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › sales related bonus
scenario: A generous sales related bonus scheme has been introduced in the year.
audit risk: This may lead to sales cut off errors with employees aiming to maximise their current year bonus.
Maam by sales cut-off error we mean that employees may include the sales of next accounting period being in this one to maximise the sales of this period and hence the bonus?
Cut-off errors can go “either way” – e.g. for a 31 Dec y/e recording a transaction in Dec that should be recognised in Jan or vice versa. Please refer to Chapter 20 for more details.