An Auditors responsibility is to find misstatement, fraud and errors. But Companies accountant and top level management are responsible for preparing their financial statements. Therefore, auditors should have a clear knowledge about audit risk, how to control audit risk and before the acceptance of audit engagements, the auditor should know about managements integrity. You are as a student of auditing; write about audit risk and how to control it. In addition, explain about management integrity and the steps of accepting auditing engagement in any company and the terms of audit engagements.