Final answer:
The entity not following its stated policies for sales order approvals is not an inherent risk factor in the revenue process.
Step-by-step explanation:
The correct answer is D) The entity does not follow its stated policies for sales order approvals.
The revenue process involves the recognition and recording of sales, accounts receivable, and the collection of payments. Inherent risk factors are conditions or events that could have a material impact on the financial statements.
Options A, B, and C are all inherent risk factors for the revenue process. The complexity of revenue recognition issues, the difficulty of auditing transactions, and special industry practices can all impact the accuracy of the financial statements. However, option D, the entity not following its stated policies for sales order approvals, is not an inherent risk factor because it is an internal control issue rather than an external risk. Internal controls help ensure that transactions are recorded accurately and in accordance with company policies.