Question: Inherent risks specific to sales and receivables include (3 choices may be correct.) Pressure to overstate to meet a higher profitability target. Susceptibility to misappropriation.

Inherent risks specific to sales and receivables include (3 choices may be correct.)

Pressure to overstate to meet a higher profitability target.

Susceptibility to misappropriation.

Small number of transactions decreasing the possibility of error.

Pressure to understate to report a higher level of working capital.

Timing of revenue recognition.

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