Which of the following is not an inherent risk factor for the revenue process?
A) Complexity of revenue recognition issues.
B) Difficulty of auditing transactions.
C) Special industry practices.
D) The client does not follow its stated policies for sales order approvals.

Question

Quizplus · Accepted Answer

The client not following its stated policies for sales order approvals is not an inherent risk factor for the revenue process but rather an identified control risk factor that could affect the effectiveness of controls in place to mitigate inherent risks. Complexity of revenue recognition issues, difficulty of auditing transactions, and special industry practices are all inherent risk factors for the revenue process.

Which of the Following Is Not an Inherent Risk Factor