Which of the following is not listed as a factor influencing the risk rating in ATO inspections?

• A. Weather patterns.
• B. Prior history of non-compliance.
• C. Materiality.
• D. Industry risk.

Answer: (A)

Risk rating in ATO inspections hinges on indicators that reflect likelihood and potential impact of non-compliance. A prior history of non-compliance shows a pattern that heightens scrutiny. Materiality assesses how big an issue would be if a misstatement occurred, affecting the risk level. Industry risk accounts for typical risk profiles in different sectors. Weather patterns do not indicate a taxpayer's likelihood of non-compliance, so they are not used in determining the risk rating.