Question

Key factors for the auditor to consider regarding the entity and its environment in the revenue process are ________.

1 recent actions of competitors inside and outside the industry

2 corporate governance and related party transactions

3 regulatory oversight of the profession

4 the client's maintenance of an attorney on retainer

Answer 1

1 recent actions of competitors inside and outside the industry

The actions of competitors have direct relationship with the company's revenue process whereas other factors have no direct connection with revenue process of the company. when competitor takes any advances move towards innovative marketing technique, new production methods, price change etc will impact the revenue of the company in future.

corporate governance and related party transactions, regulatory regulatory oversight of the profession, the client's maintenance of an attorney on retainer etc have no connection with revenue potential of the company