Which of the following factors would an auditor least likely consider when assessing the inherent risk associated with sales transactions?
A) Billings are made using the percentage-of-completion method of revenue recognition.
B) The nature of the credit authorization process.
C) Some invoices are normally billed prior to shipments [which occur at a later date].
D) The conditions of the sale allow for a right of return or the right to modify the purchase agreement.
Answer: B) The nature of the credit authorization process.
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a. true b. false
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Indicate whether the statement is true or false