Considerations Relating to Specific Inherent Risk and Control Risk

Florin Ioan Scortescu ()
Additional contact information
Florin Ioan Scortescu: Associate Professor Ph.D., "Petre Andrei" University of Iasi, Romania

Anuarul Universitatii „Petre Andrei” din Iasi / Year-Book „Petre Andrei” University from Iasi, Fascicula: Drept, Stiinte Economice, Stiinte Politice / Fascicle: Law, Economic Sciences, Political Sciences, 2020, vol. 26, 200-207

Abstract: Audit risk (Ra) occurs if financial statements belonging to the firm are majorly distorted, in which case an auditor may give a defective opinion on them. This risk depends on the risk of significant distortion (Rds) and on the risk of detection (Rd). The risk of significant distortion (Rds) takes into account the inherent risk (Ri) and the control risk (Rc). The balance of an account or more transactions may have majorly distorted values, with these falling within the scope of the inherent risk. It is in turn structured in general risk and specific risk. The concept of specific risk is apparent from aspects which take into account the practice previously acquired by the auditor and the way in which the auditor is aware of the audit areas. Assessment of the specific inherent risk and control risk shall be carried out in the following.

Keywords: risk; specific; control; detection; acceptable (search for similar items in EconPapers)
JEL-codes: K1 K2 K4 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://lumenpublishing.com/journals/index.php/upa-sw/article/view/4068 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lum:rev11d:v:26:y:2020:i::p:200-207

DOI: 10.18662/upalaw/58

Access Statistics for this article

More articles in Anuarul Universitatii „Petre Andrei” din Iasi / Year-Book „Petre Andrei” University from Iasi, Fascicula: Drept, Stiinte Economice, Stiinte Politice / Fascicle: Law, Economic Sciences, Political Sciences from Editura Lumen, Department of Economics
Bibliographic data for series maintained by Antonio Sandu ().