As the Effectiveness of Internal Control Increases,what Happens to Control

question 6

Multiple Choice

As the effectiveness of internal control increases,what happens to control risk?

• A)It stays the same.
• B)It increases.
• C)It changes based on the audit procedures conducted.
• D)It decreases.

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Definitions:

Co-Determination

a system or practice, particularly in some European countries, where workers or their representatives have a role in the management and decision-making processes of a business.

Compensation Committee

A committee within a board of directors, responsible for recommending policies on executive compensation, including salaries, incentives, and benefit plans.

Audit Committee

In corporation law, a committee of the board that recommends and supervises the public accountant who audits the corporation’s financial records.

Executive Committee

A subgroup of an organization's board or leadership that makes key decisions between full board meetings or manages certain aspects of the organization's operations.