Part 4 Audit Risk Model (35 points) I,. Define the following risk components Audit Risk, and control Risk Audit Risk Control Risk II. 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 will set which audit with a higher level of Audit Risk? Audit III. Classify each of the following items as related to: a. audit riak; b. control risk; c. inherent riski or d. detection risk. 1. An inexperienced staff auditor misses a material 2. The account balance is based on a large number of 3. To foster a sense of responsibility, company policy is not 4. The audit staff only check the arithmetic accuracy of the misstatement of an account subjective estimates to check the work of the accounting staff company's trial balance 2. Section III is on the next page