You are involved in the training department of an audit firm. As part of the firm's commitment to learning junior audit trainees are provided the opportunity to lecture their fellow trainees once a month. Your task is to sit in these lectures, to listen to questions. You are currently attending such a session, and while paying close attention to the trainee's lecture, you note she makes the following statements: 1. If the auditor conducts his audit competently and in terms of his firm's quality control standards, audit risk is reduced to zero. 2. The components of audit risk are inherent risk, control risk and materiality. 3. Not all significant risks identified on an audit involve fraudulent or manipulation of the financial statements. 4. Risk assessment procedures can also be described as "further audit procedures 5. If an audit clients financial accounting personnel are not up to date with the accounting standards, detection risk is significantly increased. 6. Audit procdures such as enquiry, observation and analytical procedures are not carried out as tests of controls. 7. The risk of material misstatement is the same as audit risk. 8. Audit risk can be defined as the risk that the audit will express an inappropriate opinion when the financial statements are materially misstated. 9. When conducting risk assessment procedures, the auditor should gain a thorough understanding of, inter alia, the control environment at the audit client. 10. The most effective response to an increase in the assessed risk of material misstatement at the financial statement level is to increase the extent of tests of controls. You are required to: Evaluate whether each of the statements made by the junior trainee (1-10) is correct or incorrect. Where she made an incorrect statement, you are required to explain why it is incorrect