What are the audit risks?

Internal risk, control risk, inspection risk and other risks.

1. Internal risk: refers to the possibility of major untrue events occurring in the accounting process of the audited entity. If the audited entity may have problems such as fraud, false report or misstatement, it will lead to major errors in the financial statements.

2. Control risk: refers to the possibility that the internal control system of the audited entity cannot find and correct the major untrue events that have occurred. If the audited entity does not have an effective internal control system, or the implementation of the internal control system is flawed, it will lead to major errors not being discovered.

3. Inspection risk: refers to the possibility that auditors cannot find major untrue matters when implementing audit procedures. If auditors don't have enough evidence to support their audit conclusions, or they don't apply audit procedures correctly, they don't find major mistakes.