Which of the following is a significant factor to assess while testing revenue recognition?

Assessing the consistency of contract prices is crucial when testing revenue recognition because it directly impacts how revenue is recognized in financial statements. Revenue recognition standards require that companies recognize revenue when it is earned and realizable, which is often tied to the terms outlined in contracts. If contract prices fluctuate or are inconsistent, it could lead to misstatements in revenue reporting, affecting the accuracy of financial results. This inconsistency could arise from various factors, such as discounts, rebates, or other pricing variations that may not comply with the agreed terms.

When reviewing contract prices, auditors can verify whether revenue has been recognized appropriately according to the relevant accounting standards, such as IFRS 15 or ASC 606, which emphasize the importance of contract terms in determining when and how revenue should be recognized. By ensuring that contract prices are consistently applied, auditors can effectively assess the integrity of the revenue recognition process within the organization.

Other factors mentioned, such as reviewing marketing strategies, tracking changes in management's personnel, or conducting unrelated customer interviews, may provide some insights into the business environment and potential risks but do not directly address the mechanics of revenue recognition concerning pricing consistency. Thus, while those factors could be relevant in broader risk assessments, they do not have the same direct connection to the