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Lesson 22 B3aB3b

Audit risk - part 3

You'll learn how to identify and explain audit risks in exam scenarios—a skill that appears in nearly every audit question.

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In this lesson

  1. 0:00 Audit risk in exam questions
  2. 0:36 Identifying audit risks from scenarios
  3. 1:23 Inherent, control and detection risk
  4. 2:01 Large transactions and material misstatement
  5. 2:46 How inherent risk factors increase risk
  6. 4:26 Control risk factors and monitoring gaps
  7. 5:18 Detection risk under auditor control

About this lesson

This video teaches you to spot the key facts in a case that signal increased risk, whether that's inherent risk (the nature of the business), control risk (weaknesses in systems), or detection risk (limitations in the audit itself). You'll discover why simply naming a risk isn't enough; the marks come from explaining what makes it risky and why it matters. By working through practical examples—from cash-based businesses to new accounting systems—you'll build the confidence to tackle audit risk requirements in your AA or AAA exams with clarity and depth.

Duration: 6m

Transcript

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