: The Audit Risk Model (15 marks) a) For each of the following, identify the component of the audit risk model that is affected and if it increases or decreases the related risk. (12 marks) Type of risk affected Change to the level of risk i) The audit plan and all working papers are carefully reviewed by the audit partner responsible for the engagement. ii) The clients industry is well-established and operations are all located within politically stable regions. iii) The clients financial statements will be read and relied upon by a large number of stakeholders. iv) The client recently implemented a new accounting information system that has not yet been tested thoroughly. v) The client has no related party transactions. vi) The engagement team is comprised of inexperienced auditors who are tasked with the bulk of the field work. b) What is acceptable audit risk? What is audit risk? What is the difference between them? (3 marks)