Audit Risk Made Easy | Inherent, Control & Detection Risk | ACCA AA & ICAN

Struggling with audit risk? Learn the difference between inherent risk, control risk and detection risk in this simple Chapter 8 lesson from Lilian ACCA School. In approximately 11 minutes, we explain the audit risk model, calculate detection risk and show how to connect a business fact to a possible financial statement misstatement, assertion and audit response. This beginner-friendly lesson supports ACCA Audit and Assurance (AA), ICAN and university auditing students. 📚 WHAT YOU WILL LEARN • Audit risk versus business risk • Inherent risk, control risk and detection risk • How to calculate detection risk • Lilian’s five-step approach to analysing audit risks • Practical examples involving inventory, sales, receivables and assets • A short quiz and homework to test your understanding ⏱️ VIDEO CHAPTERS 00:00 Introduction and lesson roadmap 00:52 Audit risk explained simply 01:30 Business risk versus audit risk 02:06 The three components of audit risk 04:06 Calculating detection risk 05:29 Lilian’s five-step approach 06:17 Nova Devices practice 08:09 Responding to changes in the audit 08:47 Quiz and recap 09:30 Homework practice 10:01 Closing challenge 💡 STUDY TIP An audit risk answer should explain what could be wrong in the financial statements. An auditor’s response should describe the audit work needed to investigate it. Keep this separate from recommending improvements to management’s controls. 🎓 PRIVATE TUITION AND REVISION For detailed question practice, private revision and support with difficult topics, contact Lilian ACCA School on WhatsApp: https://wa.me/2348039189712⁠� 👍 Like this video, subscribe and share it with a fellow accounting student. Lilian ACCA School — complex accounting and auditing concepts, explained simply. Independent educational content; not affiliated with or endorsed by ACCA or ICAN. #AuditRisk #ACCAAA #ICAN