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The first edition of Khorwatt''s Inherent and control§risk assessments in the field of external auditing§has come to emphasize external auditor identification§and assessment of risk factors associated with the§components of audit risk that affecting clients. The§importance of this book derives from the significant§relationship between the assessed level of inherent§risk and control risk and the extent of efficiency§and effectiveness of the audit. In this regard, any§overestimation of the levels of inherent and control§risk would lead to conducting more audit work than§necessary and then the scarce audit resources will be§consumed unnecessarily. On the other hand, any§underestimation of the levels of inherent and control§risk will result in restricting the effectiveness of§the audit. This book, therefore, provides a§comprehensive theoretical foundation and practical§implications for the assessments of inherent and§control risk factors.