Based on their assessment, an auditor regards each audit area as either low, medium, or high in inherent risk (some use only high and low, normal and high, or other combinations). Inherent risk is ...

Audit engagement risk is something all auditors think about and incorporate into their decisions, but recent research suggests that they might not be thinking about it as broadly as they should.

It's a fundamental aspect of audit risk assessment, alongside control risk and detection risk. Auditors evaluate inherent risk by assessing transaction complexity, accounting estimates ...