An Increase in the Effectiveness of Internal Controls Would Have

question 66

Multiple Choice

An increase in the effectiveness of internal controls would have the greatest effect on

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

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Definitions:

Income Inequality

The uneven distribution of income within a population, leading to disparities between the wealth of different groups.

Annual Data

Information or statistics recorded over a one-year period.

Positive Economics

An aspect of economics that focuses on objective analysis and descriptions of how the economy functions, without prescribing policies.

Income Inequality

The unequal distribution of income and wealth across different groups within a society, often leading to social and economic disparities.