
Audit risk can be split into three components: inherent risk, control risk, and detection risk.
For each of the following examples, select the type of risk illustrated.
- The organisation has a high turnover of staff in the accounts department..…..?
Select ONE answer:
- Inherent
- Control
- Detection
- No Risk
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct => High staff turnover increases the risk that the internal controls in place will not be effective.
- Not correct
- Not correct

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