audit risk

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Relationship between detection risk and audit risk.

Audit risk is the possibility that auditor issue an inappropriate opinion that is he says financial statements does not contain material misstatement when actually they do.

Audit risk is made by three types of risk which are an inherent risk, control risk, and detection risk.

Inherent risk is the risk that financial statements … Read the rest

Absolute assurance in auditing - meaning

3 types of audit risk.

Risk is the probability or threat of damage, injury, loss, liability or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.

Audit risk is the chance that the auditor reaches the inappropriate conclusion in the area under audit. The audit process is designed to … Read the rest

Inherent risk in auditing - meaning

Inherent risk in auditing – meaning

Inherent risk is susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls.

Inherent risk is the risk which an entity is exposed to due to nature of its transaction … Read the rest