Key factors for the auditor to consider regarding the entity and its environment in the revenue process are _______.
A)corporate governance and related party transactions
B)regulatory oversight of the profession
C)recent actions of competitors inside and outside the industry
D)the client's maintenance of an attorney on retainer

Question

Quizplus · Accepted Answer

The auditor should consider factors related to the entity's corporate governance, including related party transactions, as they could affect the revenue process. Regulatory oversight of the profession is important but not directly related to the entity and its environment in the revenue process. Competitors' recent actions are also not directly relevant. The client's maintenance of an attorney on retainer may be important, but not specifically related to the revenue process.

Key Factors for the Auditor to Consider Regarding the Entity