Increasing the Effectiveness of Internal Controls Would Have the Greatest

question 101

Multiple Choice

Increasing the effectiveness of internal controls would have the greatest effect on

• A)reducing inherent risk.
• B)reducing control risk.
• C)reducing detection risk.
• D)reducing audit risk.

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Definitions:

Great Depression

A severe worldwide economic depression that took place during the 1930s, affecting most countries, leading to significant declines in output, severe unemployment, and acute deflation.

Dust Bowl

A period in the 1930s characterized by severe dust storms that greatly damaged the ecology and agriculture of the US and Canadian prairies.

International Financial Structure

The global framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing.

Trade Deficit

A situation in which a country's imports exceed its exports during a given time period.