In March 1995, the APB in the UK issued its Statements of Auditing Standards 300 (SAS 300): 'Accounting and Internal Control Systems and Audit Risk Assessment'. The standard identifies inherent risk as one of the three components of audit risk; inherent risk being defined as 'the susceptibility...

While contingency research has highlighted the importance of achieving a match between strategy and an organisation's management control system (MCS), much of the literature to date has concentrated on cross-sectional analysis. This has resulted in a static representation of the relationship,...