The auditor should consider audit risk when planning and performing an examination of financial statements in accordance with generally accepted auditing standards. Audit risk should also be considered together in deter-mining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures.

Required:
a. Dei ne audit risk.
b. Describe the components of audit risk (e. g., inherent risk, control risk, and detection risk).
c. Explain how these components are interrelated.