In forming an opinion on the financial statements, an auditor faces various audit-related risks and risk components. Two types of audit-related risk can be distinguished: audit risk and business risk. Audit risk can generally be defined as the probability of incorrectly reporting on the financial statements, and is a function of a number of auditor-and auditee-related risk components. Business risk relates to the adverse consequences to the audit firm arising from any litigation or criticism concerning the auditor’s work or [...]