Inherent risk refers to: a. The possibility that a material misstatement will occur within the reporting company's accounting information system b. The possibility that a material misstatement that has occurred will not be detected on a timely basis by the company's control system

“what is occurring when you buy a united states saving bond? you are paying for your child’s college education. you are borrowing money from saving and loan association. you are loaning money to the government. “ i hope this information you.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan