acc413riskw08 - What is Risk? Risk dictionary definition...

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What is Risk?
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Risk – dictionary definition Risk n 1 : possibility of loss or injury
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When something is said to be risky it  means the uncertainty of success,  failure, or the status quo. For years I  have thought that things in and of  themselves had different “risk” levels.  As the years have progressed though I  have started to belief that the word  “risk” is actually an other term for “level  of understanding”.  From CEO Blues found at http://www.ceoblues.com/archives/2003/ may/theknowledgeof
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IIA Definition of Risk The uncertainty of an event occurring that could have an impact on the achievement of objectives. Risk is measured in terms of consequence and likelihood.
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Types of risk Inherent risk Control risk Detection risk Audit risk
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Inherent Risk Internal audit perspective Risks of not meeting objective in absence of controls External audit perspective Is the risk that an assumption results in a material misstatement in the absence of internal controls
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This note was uploaded on 03/25/2011 for the course ACC 413 taught by Professor Cannon during the Winter '11 term at Grand Valley State University.

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acc413riskw08 - What is Risk? Risk dictionary definition...

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