what is inherent risk versus control risk
Hello everyone. I want to discuss two key elements of audit risk and how they made perfect sense while studying them. So inherent risk is the risk of misstatement assuming no controls are in place, while control risk is the risk of misstatement if the controls dont work. These are the two elements of audit risk that the auditor doesnt control, but are very important.
The inherent risk meant that no matter how well we performed we could still experience an immense loss in the business. 10 people found this helpful. Many projects will have a certain inherent risk and you will need to judge if the rewards will outweigh it.he inherent risk meant that no matter how well we performed we could still experience an immense loss in the business. 10 people found this helpful. Many projects will have a certain inherent risk and you will need to judge if the rewards will outweigh it.