CORAA University · Tool

Audit Risk Scorer

Rate inherent and control risk factors for any audit area — get detection risk target and recommended procedures.

Select Audit Area

Inherent Risk Factors

Risk due to account nature, before considering controls

Transaction Volume3/5
Few transactionsThousands of transactions
Complexity3/5
Routine, no judgmentsEstimates, complex contracts
Manual Processing3/5
Fully automatedHeavy manual data entry
Estimates & Judgments3/5
Factual, no estimatesSignificant estimates required
Fraud Risk3/5
Low incentive to misstateEasy to misappropriate
Regulatory Sensitivity3/5
Standard accountingNFRA focus, listed company

Control Risk Factors

Risk that client controls fail to prevent/detect misstatements

Authorization Controls3/5
Clear segregation of dutiesSingle person can authorize & process
Reconciliation Controls3/5
Monthly reconciliations, timelyNo reconciliations done
System Controls3/5
Access restrictions, audit trailOpen access, no change tracking
Review Procedures3/5
Supervisory review, exceptions investigatedNo review, exceptions ignored
Management Tone3/5
Controls emphasized, integrity modeledPressure overrides controls

Risk Assessment: Revenue & Receivables

Inherent Risk
3.0
Moderate
60% risk level
Control Risk
3.0
Moderate
60% risk level
Detection Risk
14%
Standard procedures
Audit Risk Formula (ISA 315)
Audit Risk = Inherent Risk × Control Risk × Detection Risk
5% = 60% × 60% × 14%

Recommended Procedures

  • Sample 20% of revenue transactions
  • Cutoff testing (±5 days)
  • Receivables aging analysis

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