The Audit Risk Model and Inherent Risk Assessment

The profession breaks down audit risk into three parts, including inherent risk, control risk, and detection risk. Emphasizes inherent risk assessment. Fraud risk is the most significant part of the risk assessment.

Introduced the audit risk model and claimed that auditing has inherent risk if the client has a high volume of Bitcoins transactions.

Why the Bitcoin business has inherent risk? Write a paragraph

Fraud and fraud risk in auditing.

Explain how accounting errors are quite different from fraudulent cases? Write a paragraph

Inherent risk and its assessment.

The five-step analytic procedure: (1) develop an expectation, (2) define a significant difference, (3) compare expectation with the recorded amount, (4) investigate significant differences, and (5) document each of the preceding steps.

Use an example to illustrate what the expectation means? Write a paragraph

Why audit evidence documentation is essential? Write a paragraph