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How do auditors react to the existence of an earnings-based bonus plan in the company being audited?

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How do auditors react to the existence of an earnings-based bonus plan in the company being audited?

Answered Same Day Dec 23, 2021

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Robert answered on Dec 23 2021
126 Votes
How do auditors react to the existence of an earnings-based bonus plan in the
company being audited?
The earnings based bonus plan increases the incentives of the employees. In order to
increase the amount of incentive, employees may do manipulations in the sales or
earnings. This increases...
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