what factors can increase inherent risk 
factors that can increase inherent risk include subjective estimates non routine transactions and the use of complex financial instruments generally the more complicated a company s business model and transactions are the higher the inherent risk is the bottom lineinherent risk is not always easy to spot particularly compared to the other main two audit risks and increases substantially in business sectors where transactions are open to a substantial amount of judgment and approximation these risks are important to take into account as they can drastically mislead investors and are generally best combatted by getting several qualified auditors to go over the books 