alleryStart learning →The risk arising from the nature of a business or transaction is
ADetection risk
BInherent risk
CControl risk
DSampling risk
Answer & Solution
Correct answer: B. Inherent risk
Inherent risk is the susceptibility that comes from the nature of the business or transaction itself.
Keep practising Audit Evidence
Browse all Audit Evidence questions for CA Inter, or explore more Auditing topics.
Related questions
Along with US GAAS, the most commonly used external audit standards areWhy is a consultant auditor engaged by a firm?Which body sets internationally recognised standards for internal auditors?An integrated audit gives an opinion on the statements and also onVerifying cost accounts and records and checking adherence to cost accounting objectives iThough paid by the client, an external auditor is regarded asOn what does the opinion on financial statements depend?An audit seeks to provide only what level of assurance?