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Usually it is risk that cannot be diminished (by additional safety measures) or avoided.
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∙ 12y ago
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What are the three components of Audit risk?
Inherent Risk, Control Risk and Detection Risk
How do you use inherent in a sentence?
There was determination inherent in his terse instructions to the workers. Mountain climbing has an inherent risk of injury or death.
The analysis of a situation to determine the level of risk inherent in that situation is called?
risk assessment
What is the analysis of a situation to determine the level of risk inherent in that situation is called?
risk assessment
What terms refers to the uncertainty inherent in projections of future ROIC?
Business risk
Which defense might a defendant use if the patients knew the inherent risk before treatment?
assumption of risk
What is the examples of inherent risk?
interest rate and unable to pay repayments
Which are the five audit implications of business risk?
Client viabilty Inherent risk: Tone at the top Audit risk of specific assertions Analyticals Information systems
What is a risk situation?
A risk situation is a dangerous situation. The risk is the inherent dangers associated with an outcome. Situation is defined as the set of circumstances that one can find themselves in.
What is the difference between Inherent Risk and Control Risk?
Inherent Risk is embeded in the Model or the structure of the Company, such as Banks and financial institutions have an inherent risk of Robbery as cash is being handled at high volumes.This cant be controlled due to the basic structure of the business. The Auditor can not change this risk due to its embeded nature. Control Risk on the contrary is the Risk due to Internal Control implemented in order to minimize material misstatements. Management designs the internal control system in order to prevent material misstatement occurence. Auditor again cant change this and has to tune the Detection risk based on the level of these 2 risks.
What security risk is inherent in dedicated router devices?
Built in backdoor user accounts and password
Residual risk is determined when?
Residual risk is determined after you reassess the hazards as if the controls were in place.
