Risk in Auditing
The audit risk model expresses the risk of an auditor providing an inappropriate opinion of a commercial entity's financial statements. It can be analytically expressed as:
- AR = IR x CR x DR
Where AR is audit risk, IR is inherent risk, CR is control risk and DR is detection risk.
Read more about this topic: Risk
Famous quotes containing the word risk:
“Kemmerick: Hes dead. Hes dead.
Katczinsky: Why did you risk your life bringing him in?
Kemmerick: But its Behm. My friend.
Katczinsky: Its a corpse, no matter who it is.”
—Maxwell Anderson (18881959)