Discussion:

(1) Please describe the audit risk model (RMM: risk of material misstatement model) based on your own understanding and explain the each term (factor) in the model in terms of how each factor affects to the overall audit risk (increase or decrease) and amount of audit evidence (nature, timing, and extent of evidence).

(2) Also, describe its interrelationships among each of FOUR factors of the risk model; inherent risk, control risk, and detection risk at an acceptable audit engagement risk level. ( directly proportional vs. inversely proportional, dependent, independent, positive, negative, etc..)