Auditors have not been successful in measuring the components of the audit risk model. How is it possible to use the model in a meaningful way without a precise way of measuring the$$ risk?

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Part $1$

A$.$

Exact quantification of all components of the audit risk model is not required to use the model in a meaningful way. An understanding of the relationships among model components and the effect that changes in the components have on the amount of evidence needed will allow practitioners to use the audit risk model in a meaningful way.

B$.$

Exact quantification of all components of the audit risk model is not required to use the model in a meaningful way. An understanding of the relationship of control risk and inherent risk within the audit risk model and the effect it has on the amount of evidence needed is the only necessary component. This will allow practitioners to use the audit risk model in a meaningful way.

C$.$

Exact quantification of all components of the audit risk model is not required to use the model in a meaningful way. An understanding of the acceptable audit risk within the audit risk model and the effect it has on the amount of evidence needed is the only necessary component. This will allow practitioners to use the audit risk model in a meaningful way.

D$.$

Exact quantification of all components of the audit risk model is not required to use the model in a meaningful way. An understanding of the control risk within the audit risk model and the effect it has on the amount of evidence needed is the only necessary component. This will allow practitioners to use the audit risk model in a meaningful way.