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QUESTION

Audit Risks

There are many types of risk that come into play during the audit process. Describe the following four main risks:

Business risk

Financial reporting risk

Engagement risk

Audit risk

In your each of your descriptions, provide at least 1 example scenario, and answer the following:

How would each of your examples be mitigated?

Which do you feel would be the hardest to mitigate? Why?

How does materiality play into the risk analysis?

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