An Increase in the Effectiveness of Auditing Software Will Have

question 4

Multiple Choice

An increase in the effectiveness of auditing software will have the effect of

• A) increasing detection risk.
• B) reducing detection risk.
• C) increasing control risk.
• D) reducing control risk.

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Definitions:

Incentive Pay

Financial reward given to employees beyond their regular salary, often based on performance criteria, to motivate and encourage higher productivity.

Downside Risk

The potential for loss or negative outcome in an investment or business situation.

Upside Potential

The potential for an investment, company, or project to increase in value or profitability.

Aggregation

The process of combining multiple data sets or information to produce summaries or insights for analysis.