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 entity does not follow its stated policies for sales order approvals.

Question

Quizplus · Accepted Answer

The entity not following its stated policies for sales order approvals is not an inherent risk factor for the revenue process as it reflects a control deficiency rather than inherent risk. The other options listed are inherent risk factors for the revenue process.

Which of the Following Is Not an Inherent Risk Factor