Assignment 1: Discussion—Audit Risk ModelA major focus of this module is the audit risk model for assessment of risk, as well as the various types of risk that must be assessed.
As a partner in the CPA firm Dewey, Wright, and Moore, you have decided to accept the engagement and take on AV Imports and Exports as a client. You begin the audit by
assessing the risk of the engagement. In order to make this risk assessment, you use the audit risk model. The audit committee of AV Imports and Exports seeks an
explanation of how your risk assessment was accomplished for the engagement.
How would you explain the audit risk model to the decision makers at AV Imports and Exports Research risk assessment using your textbook and the online library
resources and prepare a response. In your response, include the following:
A general summary to present your understanding of the audit risk model.
The types of risk that must be assessed and the reasons.
An example from your personal experience or an article from a scholarly source to explain why the audit risk concept is important.
Sources to use:
The American Institute of Certified Public Accountants (AICPA). AICPA code of professional conduct. Retrieved from
Public Company Accounting Oversight Board http://www.pcaob.org/
U.S. Securities and Exchange Commission http://www.sec.gov/
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