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

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

  1. Pressure to overstate to meet a higher profitability target.
  2. Susceptibility to misappropriation.
  3. Timing of revenue recognition.
  4. Small number of transactions decreasing the possibility of error.
  5. Pressure to understate to report a higher level of working capital.

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