oUnderstand the audit risk formula and model

oUnderstand the relationships between inherent risk and control risk, risk of material misstatement, detection risk and Audit Risk.

oUnderstand the relationships between audit risk, Risk of Material Misstatement and detection risk (is it proportional/direct or inverse) If one goes up goes does the other go up or down?

oUnderstand the impact of changes in inherent risk, control risk, detection risk to substantive testing. If detection or control risks go up or down does an auditor perform more or less work?

oPurpose of an audit?