The following statements were made by a junior trainee clerk: 1. If the auditor conducts his audit competently and in terms of his firm's quality management standards, audit risk is reduced to zero. 2. The components of audit risk are inherent risk, control risk and materiality. 3. If an audit client's financial accounting personnel are not up to date with the accounting standards, detection risk is significantly increased. 4. The risk of material misstatement is the same as audit risk. 5. The most effective response to an increase in the assessed risk of material misstatement at financial-statement level is to increase the extent of the test of controls. YOU ARE REQUIRED TO: Evaluate whether each of the statements made by the junior trainee (1-5) is correct or incorrect. Where an incorrect statement was made, you are required to explain why it is incorrect.