Define inherent risk and control risk

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Reference no: EM133004263

Question 1:

Audit risk is the risk that an auditor expresses an inappropriate audit opinion when a financial report is materially misstated. In other words, the auditor gives the opinion that the financial statements do give a true and fair view, when it actually does not.

What type of situations do you think will cause the audit risk for a particular client to be high? You can give a general or a specific answer.

Question 2:

Define inherent risk and control risk.

Question 3:

List and briefly describe inherent risk factors relating to the preparation of financial information.

Reference no: EM133004263

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