Revenue Accountant at PSPCL
                
                   593 Points
                   Joined May 2008
                
               
			  
			  
             
            
             
	INHERENT RISK- this is the risk of material misstatment coming into existence due to internal and external factors relating to client. e.g, inefficient employees complicated accounting policy etc which led to errors in FS
	 
	CONTROL RISK- this is the risk of that material misstatement which are being unprevented by internal control of the company. e.g. lack of internal audit, no proper authorisation of expenses, weaker recruitment process which result in inefficient staff.
	 
	Detection Risk-this is the same material misstatement which are not detected by internal control remain undetected even by auditor.  e.g. in sample selection there may be some transactions which are not selected escape from the audit even they are not detected by internal audit staff