FYI: (Recall the definition of audit risk )—The probability that the auditor fails to modify the opinion on financial statements containing a material misstatement. Auditors may use the following model to evaluate the risk components explicitly

AR = RMM * AP * TD, where AR = audit risk; RMM = risk of material misstatement, consisting of the combined assessments of inherent risk and control risk; AP = risk that analytical procedures performed for substantive purposes will not detect a material misstatement that occurred; and TD = risk that tests of details will fail to detect a material misstatement that was not otherwise detected.