Audit risk: essence, evaluation and directions of minimization

Abstract

Аudit risk is an opportunity for an auditor to give an incorrect opinion that affects the development of an entity’s plan of action. The assessment of the inherent risk and the risk of non-compliance with internal control has a direct proportion to the audit risk and its reduction. Minimization of audit risk and development of appropriate measures is achieved by the correct choice of methods for identifying risks and assessing them. But the lack of a single methodological approach to assessing the components of audit risk indicates a lack of awareness of this issue and requires further investigation.