Which of these factors contributleast to the risk of misstatement of inventories?
A) the volume of transactions.
B) location at a large single site.
C) vulnerability to spoilage or damage.
D) all of the factors listed contribute equally to the risk of misstatement of inventories

Question

Quizplus · Accepted Answer

Location at a large single site does not necessarily contribute to the risk of misstatement of inventories, as long as proper controls and procedures are in place. The other factors listed - volume of transactions, vulnerability to spoilage or damage - can increase the risk of misstatement if not properly addressed.

Which of These Factors Contributleast to the Risk of Misstatement