Inherent risk is the susceptibility of an assertion to material misstatement, assuming no related controls.

Name: Inherent risk is the susceptibility of an assertion to material misstatement, assuming no related controls.
Brand: Quizplus
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Quizplus · Accepted Answer

Inherent risk is the risk associated with a particular transaction or event that exists independently of any control mechanisms put in place. It is the risk that an assertion could be materially misstated even if no controls were in place to prevent the misstatement.

Inherent Risk Is the Susceptibility of an Assertion to Material