An Example of a Sales-Related Factor That Would Increase Inherent

question 94

Multiple Choice

An example of a sales-related factor that would increase inherent risk would be ________.

• A)significant legal compliance issues when making sales
• B)a history of complying with all laws and regulations
• C)strong oversight of management by the board of directors
• D)revenue recognition is relatively straightforward, with no significant accounting issue

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Definitions:

Assorting

The process of clustering or grouping various types of products together to meet consumer needs or preferences in retail.

Logistical Function

Tasks associated with procuring, manufacturing, and disseminating goods and products in correct volumes to a target user or end point.

Assorting

The process of selecting and grouping complementary products or items to offer for sale, aimed at maximizing sales and customer convenience.

Transporting

The movement of goods or individuals from one location to another through various modes of transportation such as trucks, trains, ships, or airplanes.