Absence of effective prevention controls _______.
A)decreases the risk that errors or fraud may occur
B)increases the risk that errors or fraud may occur
C)decreases the overall risk of the audit
D)has no bearing on the risk of the audit

Question

Quizplus · Accepted Answer

Absence of effective prevention controls increases the risk that errors or fraud may occur, as there are no measures in place to prevent them from happening. This in turn increases the risk of the audit as well, as errors or fraud could lead to misstatements in the financial statements.

Absence of Effective Prevention Controls _______