Please Help

815 views 1 replies

Please give EXAMPLES of inherent risk, control risk and detection risk.

Thank you everyone whosoever replies me,,..,,

Replies (1)

INHERENT RISK- this is the risk of material misstatment coming into existence due to internal and external factors relating to client. e.g, inefficient employees complicated accounting policy etc which led to errors in FS

 

CONTROL RISK- this is the risk of that material misstatement which are being unprevented by internal control of the company. e.g. lack of internal audit, no proper authorisation of expenses, weaker recruitment process which result in inefficient staff.

 

Detection Risk-this is the same material misstatement which are not detected by internal control remain undetected even by auditor.  e.g. in sample selection there may be some transactions which are not selected escape from the audit even they are not detected by internal audit staff


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details