IDNLearn.com provides a seamless experience for finding the answers you need. Get step-by-step guidance for all your technical questions from our knowledgeable community members.

Why would the inherent and control risks at Kid Castle be of concern to a potential auditor?

Sagot :

Inherent risk is one of the risks auditors and analysts must look for when reviewing financial statements, along with control risk and detection risk. ... The ultimate risk posed to the company also depends on the financial exposure created by the inherent risk if the process for accounting for the exposure fails.