Question: Briefly explain how the audit risk model should be applied in a financial statement audit. How do audit strategies affect audit testing? You do NOT

Briefly explain how the audit risk model should be applied in a financial statement audit.

How do audit strategies affect audit testing? You do NOT need to define the components of the audit risk model.

Hints: You should first know how to apply the model what are the basic steps involved in using this model? Then also think about how this model is used to determine the audit strategy and thus the combination of tests of control and substantive tests.

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