Cheatem From: XYZ Date: 5 February 2020 While examining the financial statement of the company there are many frauds or error which is not easy to examine and that risk is considered as audit risk. Audit risk is considered as the problem as it is the issue that was faced by the auditor when they fail to detect the mistakes in the financial statement of the company (Contessotto and Moroney, 2014). The control risk and inherent risk are made up of material misstatement risk so the