Strong entity-level controls _______.
A)make it less likely that transaction-level controls will operate effectively
B)make it more likely that transaction-level controls will operate effectively
C)generally increase inherent risk
D)have no bearing on inherent risk

Question

Quizplus · Accepted Answer

Strong entity-level controls set the foundation for effective transaction-level controls. This reduces the likelihood of errors and fraud, which makes it more likely that transaction-level controls will operate effectively. Strong entity-level controls also generally decrease inherent risk by providing a strong control environment.

Strong Entity-Level Controls _______