Inherent Risk Score
Combine inherent-risk factors into a weighted score.
Description
Inherent-risk factors combine complexity, subjectivity, change and fraud susceptibility.
Inherent-risk factors combine complexity, subjectivity, change and fraud susceptibility. This fixed score is a planning heuristic.1
Combine inherent-risk factors into a weighted score.
When to use Inherent Risk Score
Use this tool to combine inherent-risk factors into a weighted score.
Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
How to use Inherent Risk Score and understand its results
- Prepare the documented facts, aligned totals or expected/observed evidence labels requested. Choose applicable requirements and thresholds separately before interpreting a planning screen.
- Enter complexityScore, subjectivityScore, changeScore, fraudSusceptibilityScore, riskThreshold using the field table and calculation rules, then run the tool.
- Read weightedRiskScore, thresholdMargin, riskLevel. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| complexityScore | Complexity score | number; minimum: 0 | Required |
| subjectivityScore | Subjectivity score | number; minimum: 0 | Required |
| changeScore | Change score | number; minimum: 0 | Required |
| fraudSusceptibilityScore | Fraud susceptibility score | number; minimum: 0 | Required |
| riskThreshold | High-risk threshold | number; minimum: 0 | Required |
Enter nonnegative scores/threshold; return weighted score/margin; ≥threshold high, ≥.6threshold moderate, otherwise low.
score=.25complexity+.25subjectivity+.20change+.30fraud Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| weightedRiskScore | Weighted inherent-risk score | number; minimum: 0 |
| thresholdMargin | Risk-threshold margin | number |
| riskLevel | Inherent risk level | string; one of "low", "moderate", "high" |
{
"input": {
"complexityScore": 80,
"subjectivityScore": 60,
"changeScore": 50,
"fraudSusceptibilityScore": 70,
"riskThreshold": 65
},
"output": {
"weightedRiskScore": 66,
"thresholdMargin": 1,
"riskLevel": "high"
}
}Limitations and assumptions
Scores are not capped at 100. No audit evidence, materiality or formal risk assessment is performed.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use EQR Selection Risk: Score engagement quality-review selection risk. For a complementary task, use Significant Transaction Class: Score a transaction class for audit significance.
References
-
Inherent Risk Score — tool.io
Similar or alternative tools
- EQR Selection Risk
Score engagement quality-review selection risk.
- Significant Transaction Class
Score a transaction class for audit significance.