Question

Inherent risk and control risk differ from detection risk in that inherent risk and control risk are?

Answer 1

Detection risk refers to the auditor's processes and can be altered at the auditor's discretion, whereas inherent risk and control risk exist independently of the audit of financial statements. The relationship between detection risk and inherent and control risk should be inverse. The more the detection risk that may be accepted, the less inherent and control risk the auditor thinks to be present. In contrast, the auditor considers that the detection risk can be tolerated less as inherent and control risk increases.

Inherent risk: What is it?

• Human Involvement.
• Business connections and regular meetings.
• Assumption/Judgment Based Accounting is number three.
• Organizational structure complexity.
• Transactions that are not routine.

Cybersecurity risks, integrity and moral risks, fraud risk, subpar business system designs, etc. are a few examples of control risks. A crucial duty for the accounting department of a firm is control risk monitoring.

To lean more about Detection risk from the given link.

brainly.com/question/4298484

#SPJ4