What are the key components of audit risk management?

What are the key components of audit risk management?

The key components include risk assessment, control activities, information and communication, and monitoring.

How do you assess audit risk?

Audit risk is assessed by evaluating inherent risk, control risk, and detection risk.

Can you explain inherent risk and control risk?

Inherent risk is the susceptibility of an account balance to misstatement, while control risk is the risk that a misstatement won't be prevented or detected by internal controls.

What strategies can mitigate audit risk?

Strategies include implementing strong internal controls, regular training, and conducting thorough risk assessments.