Give a brief about audit risks

Question

Accepted Answer

Audit risks are potential threats to an organization's financial statements that could result in material misstatements.

Audit risks include inherent risk, control risk, and detection risk.
Inherent risk is the risk of material misstatement before considering internal controls.
Control risk is the risk that a material misstatement could occur and not be prevented or detected by internal controls.
Detection risk is the risk that the auditor's procedures will not detect a material misstatement.
Examples of audit risks include fraudulent financial reporting, errors in financial statements, and management override of controls.

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