Control risk /Inherent risk

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  • #180002
    Anonymous
    Inactive

    @cpa_man, Inherent Risk is something that cannot be controlled by you or other factors. It comes as part of the package, if I can say that. Client having large amounts of Cash is Inherent risk, because cash can be stolen easily. That kind of risk comes with the industry or territory.

    Control risk is something that can be controlled by the client by having good controls implemented, like having a supervisor approve the time cards.

    Hope that helped.

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