Sagar goenkasagar goenka asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

First of all risk assessment occurs at initial stages of audit, at this we are not sure about things we just fell or say guess how things will be.
now we predict RMM = IR x CR
In IR we dont consider effect of internal controls
But in CR we consider effect of internal controls, we predict whether controls would be operating effectively
so while determining RMM, CR is considered that means effect of controls is taken in to consideration. 

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