Audit Risk Calculator

Enter the inherent risk, control risk, and detection risk into the calculator to determine the audit risk.

Audit Risk Formula

The following formula is used to calculate the audit risk.

AR = IR * CR * DR

  • Where AR is the audit risk
  • IR is the inherent risk
  • CR is the control risk
  • DR is the detection risk


What is audit risk?

Audit risk is a risk that an auditor issues to an unqualified report due to the auditor’s failure to detect error or fraud.

What is inherent risk?

Inherent risk is the risk involved in the nature of a certain business.

What is control risk?

Control risk is that arises from a businesses failure of internal control mechanisms.

What is detection risk?

Detection risk is the risk that the auditing procedures my fail to detect error or fraud, such as sampling error.

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audit risk formula

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