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HMRC internal manual

Holding and Movements Alcohol Strategy - Audit Risk & PERCET

Audit Risk Model: Detection Risk

 

The risk that given that an error of significance has taken place, you do not pick up any of the items during the compliance or substantive testing on the assurance visit, and thus conclude incorrectly on the accuracy of the trader’s declarations.

However, detection risk is where credibility testing comes in – and all assurance events should contain an element of credibility testing. Credibility testing is key to operational activity under the Alcohol Strategy. Further information is provided within the HMASCR Credibility guidance.