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Sir.. If we talk about Inherent Risk, Control Risk and Detection Risk? How to understand these in simple language.


Suraj Prakash Shaw

Suraj Prakash Shaw

CA Final

0

21-Apr-20 11:12

66

Answers (3)

There is an illustration given in notes. Look at that.


Suraj Lakhotia

Suraj Lakhotia

Admin

21-Apr-20 12:04

Inherent risk is a risk of material mistatement in the FS which comes due to inherent nature of your business. Different business has different types of risk of different assertions. For example, Diamond or jewellers have Valuation related risk. Oil refinery businesses have oil price changes related risk. Inherent risk is before considering any internal controls in the entity. What are the exposure areas in your entity which can be misstated due to fraud or error? Kahaa kahaa galti ho sakti hai depending upon nature of your business, and its complexity .


Kalpesh Shah

Kalpesh Shah

CA Final

5

04-Jun-20 05:51

Hii


Sah Jamal

Sah Jamal

CA Final

5

10-Aug-20 23:53

Happy Mother's Day
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