All of the following are inherent risk factors that are pervasive to the financial statements except:
A) Highly complex significant transactions.
B) Non-routine transactions.
C) Classes of transactions are not processed systematically.
D) Supplies inventory is difficult to count.

Question

Quizplus · Accepted Answer

While supplies inventory may be difficult to count, it may not necessarily be pervasive to the financial statements as a whole. In contrast, highly complex significant transactions, non-routine transactions, and classes of transactions that are not processed systematically are all factors that can affect a significant portion of the financial statements and therefore are inherent risks that need to be carefully considered during the audit process.

All of the Following Are Inherent Risk Factors That Are