Three audit risk such as Inherent risk, control risk and detection risk at risk of material misstatement and the components of the audit risk model affected for each account identified.

A team of internal auditors was hired 10 months ago by Almond Limited to improve on its existing internal control. The process of revamping the internal control has been dragging because the CEO has kept on declining the internal auditors' suggestions for improvement. The accountant of Almond Limited has been notorious for finding gaps in the legislation in order to make its client's financial statements look presentable as desired by the clients themselves. In the past few years, Almond Limited has always been required by the Australian Tax Office to provide additional supporting information after the lodgement of its tax returns.