medium10 pts · first answer countsaudit-planning

Management bonus tied to EBITDA

Senior management’s bonuses double if EBITDA exceeds ₹50 crore, and the draft figure is ₹50.3 crore. How should this affect planning?

A.It has no effect, as bonuses are approved by the boardB.It lowers risk, as management is motivated to keep good recordsC.It is a fraud risk factor that raises the risk of overstated profitD.It only matters for the tax audit and the deduction of bonus

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Management bonus tied to EBITDA

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