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
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… Read the rest
Control risks is the risk that a misstatement that could in an assertion about a class of transaction, account balance or disclosures and that could be material, either individually or when aggregated with other misstatement will not be prevented or detected and corrected on timely basis by the entity’s internal control. … Read the rest