Use of electronic funds transfers (such as electronic data interchange and online banking) has which of the following effects on the audit risk model?
A) decreases control risks associated with cash
B) increases control risks associated with cash
C) decreases inherent risks associated with cash
D) increases inherent risks associated with cash

Question

Quizplus · Accepted Answer

Electronic funds transfers can increase inherent risks associated with cash due to the potential for unauthorized access, fraud, and errors in electronic transactions.

Use of Electronic Funds Transfers (Such as Electronic Data Interchange