Australian Auditing & Professional Practice Question

(a) If the auditor sets a high audit risk, what impact would this have on the type and

amount of evidencethe auditor would need to gather?

(b) If the auditor sets a low audit risk, what impact would this have on the type and amount of evidence the auditor would need to gather?

(c) If the auditor concludes that internal controls are weak, what impact would this

have on the overall audit strategy?

(d) Explain which components within the audit risk model make up the risk of

material misstatement?