As the Quality of the Enterprise Risk Management Process Declines,and

question 86

Multiple Choice

As the quality of the enterprise risk management process declines,and the overall quality of internal controls declines,

• A)risk of fraud decreases.
• B)risk of fraud increases.
• C)the extent of control testing increases.
• D)the extent of substantive testing decreases.

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Definitions:

Acquisition Method

An accounting approach used for consolidating the financial statements of a group where one entity has control over the others.

Noncontrolling Interest

An ownership interest in a subsidiary that is not large enough to control the company's operations, often represented as a separate component of equity in the consolidated financial statements.

Acquisition-Date Fair Value

The market value of an asset or liability at the exact date an acquisition is completed, used for accounting purposes.

Noncontrolling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company.