Exam CSSLP topic 1 question 1 discussion

Actual exam question from ISC's CSSLP

Question #: 1
Topic #: 1

You work as a Network Auditor for Net Perfect Inc. The company has a Windows-based network. While auditing the company's network, you are facing problems in searching the faults and other entities that belong to it. Which of the following risks may occur due to the existence of these problems?

A. Residual risk
B. Secondary risk
C. Detection risk
D. Inherent risk

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Suggested Answer: procedure or using procedures inconsistent with the audit objectives (detection faults). Answer: A is incorrect. Residual risk is the risk or danger of an action or an 🗳️
Detection risks are the risks that an auditor will not be able to find what they are looking to detect. Hence, it becomes tedious to report negative results when material conditions (faults) actually exist. Detection risk includes two types of risk: Sampling risk: This risk occurs when an auditor falsely accepts or erroneously rejects an audit sample. Nonsampling risk: This risk occurs when an auditor fails to detect a condition because of not applying the appropriate event, a method or a (technical) process that, although being abreast with science, still conceives these dangers, even if all theoretically possible safety measures would be applied (scientifically conceivable measures). The formula to calculate residual risk is (inherent risk) x (control risk) where inherent risk is (threats auditing, is the risk that the account or section being audited is materially misstated without considering internal controls due to error or fraud. The assessment of incorrect. A secondary risk is a risk that arises as a straight consequence of implementing a risk response. The secondary risk is an outcome of dealing with the original risk. Secondary risks are not as rigorous or important as primary risks, but can turn out to be so if not estimated and planned properly.

by 74gjd_37 at Sept. 26, 2023, 7:46 a.m.

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74gjd_37

5 months, 3 weeks ago

Selected Answer: C

C. Detection risk: the risk that an audit will not detect an issue that can result in material error. https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/audit-risk0.html Audit risk is defined as ‘the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. Audit risk is a function of the risks of material misstatement and detection risk’. Hence, audit risk is made up of two components – risks of material misstatement and detection risk. ... Detection risk is defined as ‘the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material, either individually or when aggregated with other misstatements.’

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