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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › inherent risk
Can you explain me inherent risk in brief?
Best regards
It is the risk that an error occurs in the absence of internal controls ie the risk that an error occurs in the ‘first place’.
Inherent risk is increased by factors such as: inexperienced staff, time-pressure on staff, complex transactions, pressure to perform (so that estimates become too optimistic).
It’s all explained in the lectures and notes.
Thank you
