Podcast Beta
Questions and Answers
Match the following audit risks with their definitions:
Inherent Risk = Susceptibility to a problem Control Risk = A problem exists that will not be detected by an internal control system Detection Risk = An auditor does not detect a problem that does exist Overall Audit Risk = Combination of audit risks
Match the following examples with the corresponding audit risks:
A bank’s inherent risk is a robber = Inherent Risk A thief accesses another’s account at Money Machine but is not detected = Control Risk Fraud occurs but is not detected = Detection Risk Combination of audit risks = Overall Audit Risk
Match the following risk scenarios with their descriptions:
A problem exists that will not be detected by an internal control system = Control Risk An auditor does not detect a problem that does exist = Detection Risk Susceptibility to a problem = Inherent Risk Combination of audit risks = Overall Audit Risk
What is a key requirement for audit findings?
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What is a crucial aspect of audit work documentation?
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What is a necessary mindset for auditors during an audit?
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