Risk - Risk in Auditing

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:

    “I saw the man my friend ... wants pardoned, Thomas Flinton. He is a bright, good-looking fellow.... Of his innocence all are confident. The governor strikes me as a man seeking popularity, who lacks the independence and manhood to do right at the risk of losing popularity. Afraid of what will be said. He is prejudiced against the Irish and Democrats.”
    —Rutherford Birchard Hayes (1822–1893)