There are eight parts of the planning phase of an audit. Which parts involve the evaluation of risk? (Select all that apply.)

1. Accept client and perform initial audit planning

2. Understand the client's business and industry

3. Perform preliminary analytical procedures

4. Set preliminary judgement of materiality and performance materiality

5. Identify significant risks due to fraud or error

6. Assess inherent risk

7. Understand internal control and assess control risk

8. Finalize overall audit strategy and audit plan