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What is the audit risk model? What is inherent risk? What is control risk? What is materiality in auditing? What is 'clearly trivial' and how does it relate to materiality? Why is materiality a matter of professional judgment? What is detection risk and how does the auditor manage it? How is materiality calculated in practice? What is performance materiality and why is it lower than overall materiality? What is qualitative materiality and give examples?
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What is the relationship between risk and the amount of audit evidence?

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Answer

The higher the assessed risk of material misstatement, the more persuasive (sufficient and appropriate) audit evidence the auditor needs. High-risk areas get more extensive testing, larger samples, more reliable sources, and often year-end (not interim) procedures. Low-risk areas justify less evidence.
Real-world example Because inventory valuation is high risk, the auditor gathers more and stronger evidence than for low-risk prepaid expenses.

Common follow-ups: How does risk change sample size? | Why do high-risk areas need more reliable evidence?

Audit Evidence & Procedures Audit Sampling Audit Risk & Materiality
All 18 Audit Risk & Materiality questions