- *risk that items in financial statements are *misstated as a result of problems in an organization’s *internal control systems. Control risk is considered alongside *inherent risk and *detection risk as one of three components of external *audit risk (definition 1), and it is usually assessed through *compliance testing. A system of weak internal controls implies a high control risk. 2. The *risk of a breakdown in *internal controls.
Auditor's dictionary. 2014.
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