Risk Summary Flashcards
1
Q
Risks that relate to ROMM
A
Inherent risk
Control risk
2
Q
What is meant by a detection risk?
A
Samplnig and non-sampling risk
3
Q
Left column for ROMM?
A
Which FS items are overstated/understated => why client’s treatment is wrong => there is a risk that
4
Q
Left column for MM?
A
New audit client, time pressure, lack of resources, competence
5
Q
Right column?
A
Response must relate to auditor and represent auditor’s reaction
6
Q
What is meant by inherent risk?
A
Risk occurs in the first place
7
Q
What is meant by control risk?
A
Client’s own procedures won’t pick up and correct the error
