inherent risk

Which Of The Following Is A Correct Relationship Planned Detection Risk And Inherent Risk Have An Inverse Relationship?

by

Which Of The Following Is A Correct Relationship Planned Detection Risk And Inherent Risk Have An Inverse Relationship? Detection risk. This risk is caused by the failure of the auditor to discover a material misstatement in the financial statements. Inherent risk. This risk is caused by an error or omission arising from factors other than

What Are Examples Of Inherent Risk?

by

What Are Examples Of Inherent Risk? Susceptibility to theft or fraudulent reporting. Complex accounting or calculations. Accounting personnel’s knowledge and experience. Need for judgment. Difficulty in creating disclosures. Size and volume of accounts balance or transactions. Susceptibility to obsolescence. Prior year period adjustments. How do you identify inherent risks? Inherent risk is assessed primarily by