what is audit risk

Audit Risk is the risk that an auditor expresses an inappropriate opinion on the financial statements.
Audit Risk = Inherent Risk x Control Risk x Detection Risk
Audit risk may be considered as the product of the various risks which may be encountered in the performance of the audit. In order to keep the overall audit risk of engagements below acceptable limit, the auditor must assess the level of risk pertaining to each component of audit risk.