If a client has strong entity-level controls, _______.
A)it is less likely that transaction-level controls will operate effectively
B)it is more likely that transaction-level controls will operate effectively
C)it is likely that the client has an ineffective audit committee
D)it is likely that the client has a higher assessed level of inherent risk

Question

Quizplus · Accepted Answer

Strong entity-level controls create a strong control environment, which in turn enhances the effectiveness of transaction-level controls. Therefore, it is more likely that transaction-level controls will operate effectively in such an environment.

If a Client Has Strong Entity-Level Controls, _______