Past paper Questions Flashcards
1
Q
What is the difference between business risk and audit risk:
A
Business risks facing a business can be wide-ranging and diverse which impacts a business’ ability to perform its objectives.
Business risk includes that of business failure.
Audit risk includes any factors which may cause a material misstatement or omission in the financial statements.
Business risk relates to shareholders and the organisation. Audit risk relates to specifically the auditor.
Business risks can lead to audit risks
Audit is a function of inherent, control and detection risk.
