Final answer:
Increased fraud risk can lead to higher inherent risk and client risk, as well as a focus on lowering detection risk. However, it does not directly result in a lower control risk; control risk pertains to the effectiveness of the client's internal controls.
Step-by-step explanation:
The question 'Increased fraud risk could result in all of the following except?' relates to the components of audit risk, which include inherent risk, detection risk, control risk, and client risk. Each type of risk plays a role in how auditors assess and approach an audit.
In the context of this question, increased fraud risk generally leads to a higher inherent risk because there's a greater chance that the financial statements may be materially misstated due to fraud. Similarly, increased fraud risk could also lead to a higher client risk as the potential for damage to the client's financial status or reputation rises. In response, auditors may lower detection risk to counterbalance the increased inherent and client risks; thus, making detection risk the one that doesn't increase due to higher fraud risk. Detecting fraud could become more of a focus in the audit, meaning that detection risk needs to be low to ensure auditors work harder to uncover potential fraud. The increased fraud risk wouldn't result in a lower control risk, because control risk is related to the effectiveness of a client's internal controls, and a high fraud risk could be indicative of poor internal controls.