The most important element of the audit risk model is control risk.

Question

Quizplus · Accepted Answer

The most important element of the audit risk model is inherent risk, which refers to the risk that exists in the client's operations and financial reporting. Control risk is also an important element, as it relates to the risk that the client's internal controls will not detect or prevent material misstatements. However, inherent risk is considered to be more important because it is outside of the auditor's control and affects the overall level of audit risk.

The Most Important Element of the Audit Risk Model Is