Control risk
In one sentenceThe likelihood that the business's internal control will not prevent a material error, or will not detect and correct it in time.
Simply put
Even an item that is risky by nature can be protected by good controls. If the controls are weak or not applied, control risk rises.
The auditor assesses it by understanding the business's procedures and then by testing controls, and like inherent risk it is outside the auditor's control.
Example
An establishment in which one employee receives cash, records it in the books and deposits it in the bank: control risk over cash is high because there is no segregation of duties, however honest the employee is.
Don't confuse it with
Detection riskControl risk concerns the business's controls, while detection risk concerns the auditor's own procedures.