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Hello everyone. I want to discuss two key elements of audit risk and how they made perfect sense while studying them. So inherent risk is the risk of misstatement assuming no controls are in place, while control risk is the risk of misstatement if the controls dont work. These are the two elements of audit risk that the auditor doesnt control, but are very important.
Risk vs Issue. Many people agree with the view point that it is generally more acceptable to classify items by their actuality (issue) and potentiality (risk).However, there is a host of perceived differences between issue and risk, and among the most notable is that issues are assigned to persons.This would infer that it is not possible to assign people to particular risks. Although this would be fine with the PMI format, itâs not a basic requirement.any people agree with the view point that it is generally more acceptable to classify items by their actuality (issue) and potentiality (risk).