Which of the following factors is not likely to affect the level of inherent risk associated with an application system?
Which of the following factors is not likely to affect the level of inherent risk associated with an application system?
Inherent risk refers to the exposure arising from the nature of business activities without considering any controls. If controls over the system appear reliable, this implies that there are measures in place to mitigate risks, rather than affecting the inherent risk itself. Therefore, the reliability of controls is not a factor in determining the level of inherent risk.
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