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