PCAOB Auditing Standards No. 8, Audit Risk, provides guidance about the auditor's consideration of audit risk in an audit of financial statements. Visit the PCAOB's website (www.pcaob.org) to obtain the standard to address the following questions.
(a) What is audit risk?
(b) Audit risk is a function of what other types of risks?
(c) PCAOB Auditing Standard No. 8 notes that the risk of material misstatements at the assertion level consist of two components. What are they?
(d) How does detection risk differ from the two components of the risk of material misstatement?