Question 2  Required: Briefly answer the following questions:

1. What does the assessment of risks of material misstatement in the financial statement enable an auditor to do? (2)

2. Give four (4) risk assessment procedures. (2)

3. What are the three (3) constituents of audit risk? (2)

4. What is inherent risk? (1)

5. Explain the term control environment. (2)

6. What are control activities? (2)

7. What are the inherent limitations of internal control that give rise to control risk? (3)

8. Is detection risk controllable? Explain. (2)

9. What are “sampling risk” and “non-sampling risk”? (4)