Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

How do you differentiate inherent risks, control risks, and detection risks?

user-image
Question ajoutée par Utilisateur supprimé
Date de publication: 2017/05/18
Khaled Al-Sanabani
par Khaled Al-Sanabani , Director , Climax Audit and Consulting (member Firm of Parker Randall International)

Audit risk model:

Inherent risks, control risks, and detection risks are the elements of the audit risk model.

Inherent risk:

Inherent risk is the risk posed by an error or omission in a financial statement due to a factor other than a failure of control. In a financial audit, inherent risk is most likely to occur when transactions are complex, or in situations that require a high degree of judgment in regards to financial estimates.

Control risk:

Control risk, which is the risk that a misstatement due to error or fraud that could occur in an assertion and that could be material, individually or in combination with other misstatements, will not be prevented or detected on a timely basis by the company's internal control.

Detection risk:

 

Detection risk is the chance that an auditor will not find material misstatements relating to an assertion in an entity's financial statements through substantive tests and analysis. Detection risk is the risk that the auditor will conclude that no material errors are present when in fact there are.

More Questions Like This

Avez-vous besoin d'aide pour créer un CV ayant les mots-clés recherchés par les employeurs?