1- materiality is a concept that can be applied quantitatively or qualitatively. in essene, it is a concept used to ensure that the auditor gathers sufficient evidence to render and opinion on the financial statements without adversely affecting the decision of a reasonable person relying on the financial statements. question 2- setting audit risk at 5% us a valid setting for controlling audit risk at a low level only if the auditor assumes that unherent risk is 100% or gignificantly greater then the real level of inherent risk Question 3