2- Audit A involves a large SEC client which is very important to the audit partner; Audit B involves a small retail story which is less important to the audit partner, The audit partner wil set which audit with a higher level of Audit Risk ?

Audit _______

3- Classify each of the following items as related to a) audit risk b) control risk c) inherent risk d) detection risk

An inexperienced staff auditor misses a material misstatement of an account.

The account balance is based on a large number of subjective estimates.

To foster a sense of responsibility, company policy is not to check the work of the accounting staff.

The company has few procedures to safeguard its assets and its accounting records.