CSSLP · Question #1
You work as a Network Auditor for Net Perfect Inc. The company has a Windows-based network. While auditing the company's network, you are facing problems in searching the faults and other entities tha
The correct answer is C. Detection risk. The difficulty in identifying network faults during an audit directly relates to the effectiveness of controls in detecting errors or misstatements, which is known as detection risk.
Question
You work as a Network Auditor for Net Perfect Inc. The company has a Windows-based network. While auditing the company's network, you are facing problems in searching the faults and other entities that belong to it. Which of the following risks may occur due to the existence of these problems?
Options
- AResidual risk
- BSecondary risk
- CDetection risk
- DInherent risk
How the community answered
(20 responses)- A10% (2)
- B5% (1)
- C80% (16)
- D5% (1)
Why each option
The difficulty in identifying network faults during an audit directly relates to the effectiveness of controls in detecting errors or misstatements, which is known as detection risk.
Residual risk is the risk remaining after controls have been implemented and threats mitigated.
Secondary risk is a new risk introduced as a direct result of implementing a risk response.
Detection risk is the risk that an auditor's procedures will fail to detect a material misstatement or error that exists. When an auditor faces problems in searching for faults and entities during a network audit, it indicates a higher likelihood that the audit process itself might not uncover significant issues, thereby increasing the detection risk.
Inherent risk is the susceptibility of an assertion or an account balance to material misstatement, assuming there are no related internal controls.
Concept tested: Types of audit risk
Source: null
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