inherent risk and control risk
From Internet:
1. Inherent Risk
Inherent risk is the auditor’s assessment of the susceptibility to material misstatement of an assertion about a transaction class, an account balance, or an attached disclosure, quoted individually or an aggregation. The assessment is performed before the consideration of relevant internal controls in place. Inherent risk is essentially the perceived systematic riskSystematic RiskSystematic risk is that part of the total risk that is caused by factors beyond the control of a specific company...
2. Control Risk
Control risk is the auditor’s assessment of how likely a material misstatement can occur in an assertion