Please include Cite:

The typical audit process includes the following steps:

1. Planning the audit engagement.
2. Establish an understanding of the client and environment, the type of engagement to be performed, including internal control.
3. Assess the risks of misstatement, consider materiality, and design audit procedures.
4. Perform planned and additional audit procedures for reasonableness.
5. Finish the audit.
6. Write the opinion and issue the audit report.

For this discussion, the importance of risk assessment will be the chief focus. What are the components of audit risk. Within your response, please discuss, describe, and explain the nature of the risk assessment that auditors may employ to obtain an understanding of the client and environment. Furthermore, please address the following risk-related items in your response.

How is an audit influenced by the auditors' assessment of audit risk and materiality?

How should do auditors address the level of fraud risk?