Audit risk is the risk that an auditor may express an incorrect opinion on the financial statements. This can happen due to various reasons such as material misstatements not being detected.

To minimize audit risk, I would perform risk assessment procedures to identify areas with high inherent risk and control risk. Then, I would design audit procedures such as substantive procedures, tests of controls, and analytical procedures to respond to these risks.

I would also ensure that the audit sample is representative of the population, and perform audit procedures on this sample. Finally, I would evaluate the audit evidence obtained and draw conclusions on the fairness and accuracy of the financial statements.

By adopting a risk-based audit approach and using a combination of audit procedures, I believe I can effectively minimize audit risk and provide a reliable audit opinion. Do Check my videos for gaining knowledge and revising.

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