Increased fraud risk could also result in all of the following except:
A) Lower detection risk.
B) Higher inherent risk.
C) Lower control risk.
D) Higher client risk.

Question

Quizplus · Accepted Answer

Increased fraud risk typically leads to a higher inherent risk and client risk, and lower control risk. However, it does not result in lower detection risk, as higher fraud risk would require auditors to exercise greater professional skepticism and conduct more extensive procedures in order to detect any potential fraud. Therefore, the incorrect choice is C, as fraud risk would not lead to lower control risk.

Increased Fraud Risk Could Also Result in All of the Following