1- How does the concept of materiality influence the audit process? (2 points)

2- Explain the differences between Top-Down Versus Bottom-Up Audits? (4 points)

Determine the missing Audit risk Component in the following cases:

1. Audit Risk = 0.05 & Control Risk = 0.7 & Detection Risk = 0.3
2. Audit Risk = 0.02 & Inherent Risk = 0.4 & Detection Risk = 0.11
3. Audit Risk = 0.02 & Inherent Risk = 0.8 & Control Risk = 0.5
4. Inherent Risk = 1 & Control Risk = 0.07 & Detection Risk = 0.286