Minimizing Audit Risk. Please respond to the following:

Auditors have to make judgement concerning materiality on every audit. Since the auditing standards give no formal guidance for how determine materiality, auditors must rely on there own experience. Determine at least three qualitative factors that effects the auditors judgement. Provide a rationale for your respond. Auditors rely on the audit risk formula to determine the types and amount of audit evidence to collect in order to keep the overall audit risk of engagement to a minimum or below defined tolerable limits. Suggest an alternative to the audit risk equation in order to mitigate audit risk. Support your rationale with examples of the successful use of the alternative strategy