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Component of audit risk within the control of the auditors

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Is any component of audit risk within the control of the auditor? Explain.

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Absolutely yes. Audit risk is defined as the possibility that an audit firm may issue a financial statement that is materially misstated. If the financial statements contain disclosures in either the opinion or the footnotes that would lead a reader to understand certain risks, that is not what audit risk is about.

It is more about the fact that the auditors may not discover some ...

Solution Summary

The 248 word solution lists the types of audit risk, and explains the position of auditors in terms of risk assessment.