Operational risk
Operational risk is the risk of loss or disruption arising from inadequate or failed processes, people, systems or external events. For an audit, the practitioner assesses whether a particular operational risk could lead to a material misstatement and designs an appropriate response.
Worked example
A system outage disrupts sales recording; the auditor considers whether revenue and cut-off could be misstated.
Common mistake
Do not stop at the operational event: identify its financial reporting implication and the evidence needed.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |