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What is Audit and Business Risk Analysis about?
This document discusses audit risk and its components. Audit risk is the risk that the auditor gives the wrong audit opinion. It is assessed using the audit risk model and is a function of financial statement risk and detection risk. Financial statement risk has two components - inherent risk, which is the risk due to the nature of the business, and control risk, which is the risk that internal controls fail to prevent errors. Detection risk is the risk that substantive audit tests fail to detect material m
- Author
- emerald
- Language
- EN