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  Explain two common inherent risks in the revenue process and explain how each risk is likely to affect the financial statements (e

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  Explain two common inherent risks in the revenue process and explain how each risk is likely to affect the financial statements (e.g., identify the accounts that are likely to be overstated or understated and explain why).

Briefly explain a likely flow of transactions related to authorizing and recording credit sales for a manufacturer that sells its products on credit. Identify the documents involved and explain the process from authorizing the transaction through recording in the general ledger.Explain a sound control over revenue recognition in the process of making credit sales for a manufacturing company.