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In addition, these problems may have occurred due to inadequate sample sizes when determining the level of risk or the auditor failed to use proper auditing policies.
2. Detection risk
a. inherent risk
b. control risk
d. acceptable audit risk
In order to assess the planned detection risk associated in an audit, auditors consider three separate influencing risks: inherent risk, control risk and detection risk.
Inherent risk were environmental factors, (background knowledge of the client and were past audits indicate no difficulties) are considered against whether or not they would lead to a material error, before considering the 'function of internal controls'...
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