Abstract This paper attempts to clarify the modeling concepts of audit risk planning and of audit risk evaluation. From the SAS No. 47 definition of audit risk and its components, a model is developed and shown to be conceptually different from the one commonly accepted. This model then formally extends and redefines some concepts introduced by similar, tree-like models which, although consistent with the definition of audit risk, are not quite complete for risk planning and risk evaluation.
John T. Sennetti (Thu,) studied this question.