This week it covers receivables/revenues and payables/liabilities. Both areas come with some type of risk. For receivables/revenues, the biggest risks deal with overstatements. For payables/liabilities, the biggest risks deal with understatements.

Find the management discussion and analysis in the Form 10-K of a publicly traded company that interests you. (Post a link so everyone can see it.) What risks does the company identify that might lead to the risk of overstating receivables/revenue or understating payables/liabilities? What specific tests might an auditor design based on those risks?

In your responses, support or respectfully challenge their assessment of the risks of overstatement and understatement for their chosen company and the tests an auditor might choose to address them. Are there additional risks your peers failed to identify? Would you recommend tests different from the ones they chose to address the risks that they identified? Why or why not?