The likelihood of misstatements in the financial statements increases if the client has poor internal control.

Question

Quizplus · Accepted Answer

Poor internal control makes it easier for errors or fraud to go undetected, increasing the likelihood of misstatements in the financial statements. Adequate internal control helps to ensure the accuracy and completeness of financial records and reduce the risk of material misstatements in the financial statements.

The Likelihood of Misstatements in the Financial Statements Increases If