Inherent risk and control risk are directly related.

Question

Quizplus · Accepted Answer

Inherent risk is the susceptibility of an assertion about a transaction or balance to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls. Control risk, on the other hand, is the risk that a misstatement that could occur in an assertion about a transaction or balance and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control. These risks are components of audit risk but are not directly related; they are independent factors that auditors assess separately.

Inherent Risk and Control Risk Are Directly Related