[Anonymous]

Hi, guys, just wanna know how do u distinguish the difference between control risk and inherent risk based on a scenario/event in a question.

Like how do you know whether it is the control risk or inherent risk that is increased or decreased based on a situation.

Thx~

[kb24]

If the risk would exist no matter what controls are in place or how well they are implemented, it's IR. If the degree of risk is decreased/increased by the addition/failure of specific controls, it's CR.

FAR 4/1/11 - 89
AUD 4/15/11 - 85
REG 4/29/11 - 80
BEC 5/13/11 - 85

[Bob Moritz, CPA]

Its funny you ask this question…..

[Author]

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