control 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

What is risk of material misstatement?

What is the risk of material misstatement?

The risk of material misstatement is the risk that financial statements are materially misstated prior to the audit. It is the risk that the figures and disclosure in the financial statement are not in accordance with the accounting standards and the acceptable financial reporting framework.

The risk of material misstatement consists of two components, namely inherent risk and control risk

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