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sir lack of employee with accounting skills is inherent risk or control risk?
Assuming they have some responsibility for financial accounting information, that would increase inherent risk – i.e. the risk of misstatements arising.
But if we think that the employee who lack the skills will not be able to prevent the material misstatement, this means it is control risk?
Control risk is based on an assessment of control activities, only some of which depend on activities carried out by a number of individuals. It cannot depend on on one individual, otherwise there would be a lack of segregation of duties that would most like mean control risk is high anyway, and it can’t be any higher than 100%(!)
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