Not just applying accounting standards allow discretion by users, are. Performance audits: internal audit profession, public sector audit profession, regulatory bodies: cpa australia (cpaa), institute of chartered acs in aus (icaa), National institute of acs (nia), aus prof ethical stds board (apesb), aus securities and. Investment com (asic: rules governing auditing: corps act / auditing stds / ethical code. Lecture 3: audit risk and business risk (in phase 1 of audit: planning) 4 components of risk that affect the audit approach and audit outcome: enterprise risk, engagement risk. : risks that affect the operations (erm ent risk m/ment) : comes with association with a specific client (bad rep: risk is high whenever increased likelihood that: Auditor is associated with a failed client. Financial statements contain material misstatement that the auditor fails to find: conditions increase the likelihood of the auditor being sued, audit must make client acceptance / retention decision. Decision depends on client"s corp gov / financial health.