Final answer:
Inherent risk and control risk are influenced by the client’s environment and systems, and are under the client’s control, unlike detection risk, which is associated with the auditor’s procedures and can be managed by the auditor.
Step-by-step explanation:
The concepts of inherent risk, control risk, and detection risk form the components of the audit risk model in the field of auditing. Inherent risk and control risk differ from detection risk in that they are typically under the control of the client, not the auditor. Inherent risk is the susceptibility of an assertion about a transaction to a misstatement that could be material, either individually or when aggregated with other misstatements, assuming that there were no related controls. Control risk is the risk that a client’s internal controls will not prevent or detect a material misstatement. Detection risk, on the other hand, relates to the auditor's procedures and is the risk that the auditor will not detect a material misstatement that exists in an assertion.
In summary, inherent risk and control risk are associated with the client’s environment and systems, whereas detection risk is related to the effectiveness of the auditing procedures applied by the auditor. Auditors do not have the power to change inherent and control risks, but they can adjust their audit approach to manage detection risk.