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The Inherent General Risk Issues

Author

Listed:
  • Florin Ioan Scortescu

    (Associate Professor Ph.D., "Petre Andrei" University of Iasi, Romania)

  • Gheorghe Scortescu

    (Professor Ph.D., "Petre Andrei" University of Iasi, Romania)

Abstract

The risk of significant misstatement (RDS) is the risk that the financial statements are significant misstated prior the audit. It consists of two components, namely the inherent risk (IR), which refers to the susceptibility of an assertion about a class of transactions, account balance or presentation to be materially misstated, either individually or in aggregate with other misstatements, before taking into account any checks related control risk (CR), which is the risk that a misstatement that could occur at the level of claims on a class of transactions, account balance or presentation could be material, either individually or aggregated with other misstatements, will not be prevented or detected and corrected on time by the entity's internal control. Evaluation based on evidence of the inherent general risk is carried out below.

Suggested Citation

  • Florin Ioan Scortescu & Gheorghe Scortescu, 2019. "The Inherent General Risk Issues," Anuarul Universitatii „Petre Andrei” din Iasi / Year-Book „Petre Andrei” University from Iasi, Fascicula: Drept, Stiinte Economice, Stiinte Politice / Fascicle: Law, Economic Sciences, Political Scien, Editura Lumen, Department of Economics, vol. 24, pages 182-189, December.
    • Handle: RePEc:lum:rev11d:v:24:y:2019:i::p:182-189
    DOI: https://doi.org/10.18662/upalaw/39
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    More about this item

    Keywords

    inherent; risk; misstatements; financial; statement; control;
    All these keywords.

    JEL classification:

    • K1 - Law and Economics - - Basic Areas of Law
    • K2 - Law and Economics - - Regulation and Business Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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