Part 4 Audit Risk Model (35 points) I. Define the following risk components Audit Risk and, Detection Risk. Audit Risk Detection 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 risk: b. control risk; c. inherent risk; or d. decection risk 1. An inexperienced staff auditor misses a material 2 The account balance is based on a large number of misstatement of an account subjective estimates To foster a sense of responsibility, company policy is not to check the work of the accounting staff 4. The company has few procedures to safeguard its assets and its accounting records