As the quality of the enterprise risk management process declines,and the overall quality of internal controls declines,
A)risk of fraud decreases.
B)risk of fraud increases.
C)the extent of control testing increases.
D)the extent of substantive testing decreases.

Question

Quizplus · Accepted Answer

As the quality of both the ERM process and internal controls declines, there is an increased risk of fraud. This is because weak internal controls and a poorly managed ERM process can make it easier for fraudulent activities to occur and go undetected. Additionally, there may be a lack of oversight and accountability, which can create an environment that is ripe for fraud. Therefore, the risk of fraud increases in this scenario.

As the Quality of the Enterprise Risk Management Process Declines,and