Increased Fraud Risk Could Result in All of the Following

question 56

Multiple Choice

Increased fraud risk could result in all of the following except:

• A)lower detection risk.
• B)higher inherent risk.
• C)lower control risk.
• D)higher client risk.

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Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single economic entity.

Key Management Personnel

Those persons having authority and responsibility for planning, directing, and controlling the activities of the entity, directly or indirectly.

AASB 10/IFRS 10

An accounting standard that sets out the principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.