Auditing Theory

1. Dene the risk-based audit process. Compare the risk-based audit approach and account based audit approach. 2. Give the 4 limitations of an audit risk model. 3. Describe the 3 stages of the riskbased audit process. 4. Provide the 4 critical components of risk relevant to the conduct of an audit. Describe each. 5. List and differentiate the 2 levels of materiality. 6. Describe the concept of Performance Materiality. 7. Explain the difference between Materiality and Audit Risk