Three risks need to be considered when using a risk-based audit approach. They are inherent risk, control risk and detection risk, which are collectively known as audit risk.
Required:
Complete the following statement: During the performance of an internal audit engagement, audit risk can best be described as the risk that the internal auditor ...

Question

Three risks need to be considered when using a risk-based audit approach. They are inherent risk, control risk and detection risk, which are collectively known as audit risk.

Required:

Complete the following statement: During the performance of an internal audit engagement, audit risk can best be described as the risk that the internal auditor ...

Accepted Answer

may fail to detect a significant error or weakness during the performance of the audit.

Answer

may miss testing faulty documents due to the use of sampling techniques.

Answer

may not be able to adequately evaluate a section due to a poor internal control system.

Answer

may not have the expertise required to perform the specific audit.

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Three risks need to be considered when using a risk-based audit approach. They ...

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