Q1) ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing requires the auditor to obtain sufficient appropriate audit evidence "to reduce audit risk to an acceptably low level".

What is audit risk?

The risk that an auditor fails to detect fraudulent financial reporting within the financial statements.

The risk that an auditor expresses an inappropriate opinion when the financial statements are materially misstated.

The risk that an auditor fails to minimise the risk of material misstatement in the financial statements.

The risk that an auditor is unable to express an opinion on the financial statements.

Q2) The following are examples of documents related to an audit. Which is not regulated by an ISA?

External confirmation of a trade receivables balance

An audit strategy

An audit proposal (tender document)

A summary of matters to discuss with those charged with governance