Which of the Following Factors Will Result in Control Risk

question 78

Multiple Choice

Which of the following factors will result in control risk being assessed at a higher level?

• A)Controls are well designed.
• B)There is a lack of supervision of accounting personnel.
• C)Accounting staff are well trained and educated.
• D)The control environment is operating effectively.

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Definitions:

Combining Companies

The process of merging or acquiring companies to enhance competitive advantage, expand market share or diversify offerings.

Related Businesses

Entities or companies that are connected by activities, products, services, or market sectors.

Oligopoly

A market structure characterized by a few firms dominating the market, which can lead to limited competition and potentially higher prices for consumers.

Conglomerate

A large corporation composed of diverse companies or divisions in varying industries under one corporate group.