Acceptable Audit Risk Has An Inverse Relationship To Evidence

Acceptable audit risk is a measure of how willing the auditor is to accept that the financial statements may be materially misstated. This is done after the audit is completed. And it is done after an unqualified opinion has been issued.

​Acceptable audit risk has an inverse relationship to evidence. If acceptable audit risk is​ reduced, planned evidence should increase.

​The audit risk model helps the auditor to decide how much and what types of evidence to gather. Inherent risk and control risk are not directly related.