Fogar Styles -11-12 13 14 15 16 17 2. Auditors must estimate the audit risk prior to commencing an audit assignment. Audit risk is the risk that an auditor will give a wrong audit opinion. This can cause material harm to the auditor specially from three perspectives: a) The extent of users reliance on financial statement b) The likelihood that an auditee will have financial difficulties after the audit report issued: c) The integrity of management Required: From the three perspective, briefly discuss the consequences of audit risk failure: a) Consequences of audit risk failure of users reliance of the audit opinion: b) Consequences of audit risk failure if after the audit the client faces financial difficulties: c) Consequences of audit risk failure due to management integrity