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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.)
- Pressure to overstate to meet a higher profitability target.
- Susceptibility to misappropriation.
- Timing of revenue recognition.
- Small number of transactions decreasing the possibility of error.
- Pressure to understate to report a higher level of working capital.
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