In assessing inherent risk for the purchasing process assertions, the auditor should consider pervasive factors that _______.
A)influence the understatement or overstatement of payables and expenses
B)influence the understatement of expenses only
C)influence the overstatement of payables only
D)lead to risk factors associated with purchases

Question

Quizplus · Accepted Answer

Inherent risk for the purchasing process assertions should consider pervasive factors that influence the understatement or overstatement of payables and expenses. This includes factors such as the complexity of the purchasing process, the existence of related-party transactions, and the integrity of those involved in the process.

In Assessing Inherent Risk for the Purchasing Process Assertions, the Auditor