Inherent risk is defined in terms of:
A)the existing controls.
B)the standard controls for the client's industry.
C)a total absence of controls.
D)an ideal set of controls.

Name: Inherent risk is defined in terms of: A)the existing controls. B)the standard controls for the client's industry. C)a total absence of controls. D)an ideal set of controls.
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Question

Quizplus · Accepted Answer

Inherent risk refers to the susceptibility of an assertion to a material misstatement, assuming there are no related controls in place.

Inherent Risk Is Defined in Terms Of