1. Define, and differentiate between audit risk, inherent risk, control risk and detection risk. 2. What is meant by ‘materiality’? What requirements are imposed on the auditors by this definition? 3....

2. What is meant by ‘materiality’? What requirements are imposed on the auditors by this definition?

3. What is the relationship between materiality and the phrase
obtain reasonable assurance

used in the auditor’s report?

4. Explain the interrelationships between audit risk, materiality and audit evidence.

5. Describe two major sources of detection risk that can be identified and controlled by the auditor.