The following are concepts discussed in this chapter:
1. Preliminary judgment about materiality
2. Control risk
3. Risk of fraud
4. Estimated total misstatement in a segment
5. Planned detection risk
6. Estimate of the combined misstatement
7. Acceptable audit risk
8. Tolerable misstatement
9. Inherent risk
10. Risk of material misstatement
11. Known misstatement

Required
a. Identify which items are audit planning decisions requiring professional judgment.
b. Identify which items are audit conclusions resulting from application of audit procedures and requiring professional judgment.
c. Under what circumstances is it acceptable to change those items in part a after the audit is started? Which items can be changed after the audit is 95% completed?