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Quotes of the day:
We are totally opposed to abortion under any circumstances. We are also opposed to abortifacient drugs and chemicals like the Pill and the IUD, and we are also opposed to all forms of birth control with the exception of natural family planning.
Inherent risk is the risk posed by an error or omission in a financial statement due to a factor other than a failure of internal control. In a financial audit, inherent risk is most likely to occur when transactions are complex, or in situations that require a high degree of judgment in regard to financial estimates. This type of risk represents a worst-case scenario because all internal controls in place have nonetheless failed.
Lesson 10: Assessing Inherent Risk
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