Which of the following is not a factor that tends to increase the inherent risk for purchases and payables?
A) the number of directors
B) a high volume of transactions
C) issues over costs being capitalized versus being expensed
D) All of the above are factors that tend to increase the inherent risk for purchases and payables.

Question

Quizplus · Accepted Answer

The number of directors is not a factor that tends to increase the inherent risk for purchases and payables. The other options listed in the question, B and C, are both factors that tend to increase inherent risk. Therefore, option D is incorrect as it suggests that all of the options listed increase inherent risk, when in fact only two of the three options do.

Which of the Following Is Not a Factor That Tends