alleryStart learning →Which component of audit risk arises from the nature of the business itself?
AReporting risk
BDetection risk
CInherent risk
DControl risk
Answer & Solution
Correct answer: C. Inherent risk
Inherent risk exists because of the kind of business or transaction, before any controls are considered.
Keep practising Audit Planning Strategy and Execution
Browse all Audit Planning Strategy and Execution questions for CA Final, or explore more Auditing topics.
Related questions
Working papers help third parties do what?Internal audit tests the most important controls using which approach?Working papers help show that the audit was performed in line with what?Which development lets auditors analyse entire datasets instead of samples?If liquidation becomes imminent, statements are prepared on what basis?How long is the foreseeable future usually regarded under the going concern assumption?The IAASB issues which of these?Which body sets recognised standards for internal auditors?