1. Discuss the characteristics of the IFAC audit risk model. 2. How do you define a ‘high risk’ audit client? What are the characteristics of clients that are considered high risk? 3. Regulatory...

1. Discuss the characteristics of the IFAC audit risk model.

2. How do you define a ‘high risk’ audit client? What are the characteristics of clients that are considered high risk?

3. Regulatory bodies are concerned that auditors consider the qualitative aspect of materiality judgements. Explain the meaning and the importance of ‘qualitative’ aspect of materiality.

4. What are the limitations of the audit risk model? To what extent do those limitations affect the auditor’s application of the audit risk model?

5. Why are the quality of corporate governance and the audit committee a significant determinant of the auditor’s risk assessment of an entity?