Audit Risk 6
Esk Co offers its regular customers discounts of up to 10%, which are negotiated and documented by the sales director.
This year, in order to easily monitor the amount of the customer discounts, they have been recorded separately as an expense in cost of sales.
In previous years, revenue has been recorded net of the discount
The gross profit margin has fallen slightly from 28% to 27%
Identify and Explain the Audit Risk