Question $14(1$ point$)$

Audit risk in the audit risk model concerns the risk that the auditor may issue an unqualified opinion on financial statements that are materially misstated. What is the manner in which the auditor assesses audit risk in using the audit risk model to determine the nature, extent and timing of audit evidence to collect in an audit?

Assessed to maintain low level of audit risk given residual risk.

Assessed to maintain low level of audit risk given financial statement risk.

Assessed to maintain a low level of audit risk given engagement risk.

Assessed to maintain a low level of audit risk given enterprise risk.