- A
Complexity of transactions
Complex transactions are more prone to error, increasing inherent risk.
- B
Volume of transactions
High volume increases the chance of errors, increasing inherent risk.
- C
Auditor's experience with similar systems
Why wrong: This affects detection risk.
- D
Results of prior audits
Why wrong: Prior results may influence overall risk assessment but not specifically inherent risk.
- E
Effectiveness of internal controls
Why wrong: This relates to control risk, not inherent risk.
Question 322 of 1,000
CISA Information System Auditing Process Practice Question
This CISA practice question tests your understanding of information system auditing process. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
An IS auditor is planning a risk-based audit of a financial system. Which TWO of the following factors should the auditor consider when assessing inherent risk? (Select two.)
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Complexity of transactions
Inherent risk is the susceptibility to misstatement before considering controls. Complexity of transactions and volume of transactions increase inherent risk. Control effectiveness is part of control risk, and auditor experience relates to detection risk.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Complexity of transactions
Why this is correct
Complex transactions are more prone to error, increasing inherent risk.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Volume of transactions
Why this is correct
High volume increases the chance of errors, increasing inherent risk.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Auditor's experience with similar systems
Why it's wrong here
This affects detection risk.
- ✗
Results of prior audits
Why it's wrong here
Prior results may influence overall risk assessment but not specifically inherent risk.
- ✗
Effectiveness of internal controls
Why it's wrong here
This relates to control risk, not inherent risk.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CISA exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which CISA exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Questions learners often ask
What does this CISA question test?
Information System Auditing Process — This question tests Information System Auditing Process — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Complexity of transactions — Inherent risk is the susceptibility to misstatement before considering controls. Complexity of transactions and volume of transactions increase inherent risk. Control effectiveness is part of control risk, and auditor experience relates to detection risk.
What should I do if I get this CISA question wrong?
Identify which CISA exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jul 4, 2026
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.
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