Lesson: Introduction to Audit Risk

This lesson provides an in-depth overview of audit risk, starting with a definition and its significance in the auditing process. It then discusses three main components of audit risk and how these risks affect the application of generally accepted auditing standards, particularly in the areas of fieldwork and reporting. The lesson emphasizes the importance of considering audit risk when designing audit procedures, evaluating results, and understanding the auditor's responsibilities and functions. The concept of obtaining reasonable, but not absolute, assurance that material misstatements are detected is also reiterated throughout the lesson, highlighting the importance of this concept in the context of audit risk.