Considerations Relating to Specific Inherent Risk and Control Risk

Authors

  • Florin Ioan SCORȚESCU Petre Andrei University of Iasi, Romania

Keywords:

risk, specific, control, detection, acceptable

Abstract

Audit risk (Ra) occurs if financial statements belonging to the firm are majorly distorted, in which case an auditor may give a defective opinion on them. This risk depends on the risk of significant distortion (Rds) and on the risk of detection (Rd). The risk of significant distortion (Rds) takes into account the inherent risk (Ri) and the control risk (Rc). The balance of an account or more transactions may have majorly distorted values, with these falling within the scope of the inherent risk. It is in turn structured in general risk and specific risk. The concept of specific risk is apparent from aspects which take into account the practice previously acquired by the auditor and the way in which the auditor is aware of the audit areas. Assessment of the specific inherent risk and control risk shall be carried out in the following.

Author Biography

Florin Ioan SCORȚESCU, Petre Andrei University of Iasi, Romania

Associate Professor  Ph.D., ”Petre Andrei” University of Iași, Romania

References

Botez, D. (2005). Tradiții, actualități și perspective ale profesiunii contabile din România, Iași, România: Editura Sedcom Libris.

***. (2008). Audit financiar (vol. I), București, România: Editura Irecson.

***. (2012). Ghid pentru un audit de calitate, Camera Auditorilor Financiari din România, București, România.

***. (2013). Manualul „Codul Etic al Profesioniştilor Contabili”, tradus și republicat de Camera Auditorilor Financiari din România, București, România.

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Published

2020-12-21

How to Cite

SCORȚESCU, F. I. (2020). Considerations Relating to Specific Inherent Risk and Control Risk. Anuarul Universitatii "Petre Andrei" Din Iasi - Fascicula: Drept, Stiinte Economice, Stiinte Politice, 26, 200-207. Retrieved from https://lumenpublishing.com/journals/index.php/upa-sw/article/view/4068

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