Revenue transactions and account balances subject to significant risk are not required to be documented in the working papers if the auditor determines significant risk does not apply in a particular audit engagement.

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Revenue transactions and account balances subject to significant risk must always be documented in the working papers, regardless of whether the auditor determines significant risk applies in a particular audit engagement. Failing to document risks and procedures can result in deficiencies in the audit process and noncompliance with auditing standards.

Revenue Transactions and Account Balances Subject to Significant Risk Are