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Whats a inherent risk according to you?
Its a risk that a material misstatement could occur due to nature of the entity and transactions, before any any internal controls coming into place.
is this sufficient to warrant one mark?The normal definition of inherent risk is: “the susceptibility of an assertion about a class of transaction, account balance, or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls.”
See ww.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/audit-risk0.html
So, you definition is pretty close. I would think 1 mark is no problem.
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