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I would like to know the following points.
How can the auditor respond the Inherant Risk?
And How can the auditor respond the control risk?I understand thar auditor can’t control or change the Inherant Risk and Control Risk.
Auditor can assess these both risks and can reduce the detuction risk.
Is it right or not?
Thanks
LKPTo counter both sorts of risk the suditor must perform more tests and collect more evidence.
For example, if the source of inherent risk is inexperienced staff, the auditor can reperform more of their work to look for errors staff might have made.
If the source of control risk is that purchase invoices are not cancelled when paid, the auditor must look through more payments to see if any were duplicated.
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