Beruflich Dokumente
Kultur Dokumente
How do inherent risk and control risk differ from detection risk?
Inherent risk and control risk differ from detection risk in that
inherent risk and control risk exist independently of the audit. The levels
of inherent risk and control risk are functions of the client and its
environment, and the auditor has little control over these risks. The
auditor can control detection risk through the scope (nature, timing
and extent) of the audit procedures performed. Thus, detection risk
has an inverse relationship with inherent risk and control risk.
Exercise 3-4