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Marketing/Management - Business

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MARKETING/MANAGEMENT - BUSINESS

Role of Inherent Risk in Auditing



Role of Inherent Risk in Auditing

Inherent Risk

Inherent risks are those risks that occur to a company that has a lack of pertinent security controls or processes that might be in place for countering the threat of a data loss. Inherent risks are considered external and take place before any systems, processes or technologies are applied. Thus inherent risks must be considered by an auditor because of the reason that further processes cannot be applied because of the consequences posed by inherent risks (Florea, 2013).

Inherent risks are considered to be existing in ...
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