The financial statements contain many estimates for various income statement and balance sheet items. Because of their nature. accounting estimates are susceptible to being misstated before consideration of internal controls. Auditors must consider inherent risk factors of accounting estimates during risk assessment. For each situation listed below, select the appropriate inherent risk factor that is demonstrated. Each inherent risk factor can be used once, more than once, or not at all. a. b. C. d e. A client is estimating an amount that may be owed pending the outcome of a lawsuit that may take several years to resolve. Management hires a specialist to assist with determining the value of an inventory of precious gemstones. Due to a global pandemic, the airline industry is experiencing unprecedented disruption of normal business operations. Management is estimating the fair value for a derivative financial instrument that is not traded on a public market. A client must derive a future interest rate by using interpolation techniques from forward interest rates. Subjectivity Complexity Estimation uncertainty