Relationship between Inherent Risk and Control Risk in Iran’s Auditing Professional

Abstract

Auditing standards have required assessment of risk in each auditing project by audit risk model. The aim of this study is to examine auditors’ assessment methods for inherent risk and control risk in the Iranian environment of professional auditing. After literature review of the specialized auditing sources and collecting experts’ ideas, 44 factors attributed to inherent and control risks, and then, a questionnaire designed and distributed among employed certified public accountants. The results reaveled that there is a significant relationship between control risk and inherent risk, and that integrated assessment of risks is preferred to separate assessments of each of control risk and inherent risk

Keywords

• control risk
• inherent risk
• auditing based on risk
• auditing risk model