Assessment of control risk in the view of the auditor

Assessment of control risk is a measure of the auditor’s expectation that inter controls will neither prevent material misstatements from occurring, nor detect correct them if they have occurred; control risk is assessed for each transaction-related audit objective in a cycle or class of transactions.

After obtaining an understanding of internal control, the auditor makes an assessment of control risk.

Assessment of control risk is the process of evaluating the effectiveness of the design and operation of an entity’s internal control structure policies and procedures in preventing or detecting material misstatements in financial statements.

Control risk assessments are made for individual financial statements assertions, not for the internal control structure as a whole.

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