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Distinguish the different types of risk assessment procedures-Describe the auditor’s responsibility to identify significant risks.

ASSESSING THE RISK OF MATERIAL MISSTATEMENT

Define risk in auditing.
Distinguish the different types of risk assessment procedures.
 Understand important auditor considerations related to the risk of material misstatement due to fraud.
Describe the auditor’s responsibility to identify significant risks.
 Describe the audit risk model and its components.
Assess acceptable audit risk.
Consider the impact of several factors on the assessment of inherent risk.
Discuss the relationship of risks to audit evidence.
Discuss how materiality and risk are related and integrated into the audit process

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