The Risk Of Material Misstatements

The risk of material misstatement typically is about the combo of inherent and control risk. Inherent risk is a measure of the​ assessment of the likelihood that there are material misstatements in a segment. This is of course, before considering the effectiveness of the applicable internal control. Control risk is a measure of the​ assessment that the likelihood that misstatements above a tolerable amount will not be prevented and/or detected by internal controls.