Below are five questions that all need to be based on the United States.

1. Provide and discuss some of the evidence regarding the significance of fraud in the United States.

2. Describe the risk assessment procedures used by auditors to identify risks of material misstatements in the financial statements due to fraud.

3. Explain two specific risks of fraud that the auditor should always consider in every audit. How should the auditor respond to these risks when making decisions about the risk of material misstatement?

4. What is the relationship among the components of audit risk?

5. Explain the relationship between materiality, detection risk, and substantive audit evidence.