For example, when auditors carry out the audit of the company's financial statements, the auditors face audit risk which has two elements; the risk that the financial statements contain material misstatements, inherent and control risk, and the risk that the auditor fails to detect material misstatements, detection risk. Firstly, auditors adopt the risk-based approach where they analyze the risks associated with the client and direct testing towards risky areas, therefore there is a likelihood that they will fail to detect a material statement and express an inappropriate audit opinion. Second, auditors rely on information provided by the responsible party, and staff members may collude in fraudulent activities to deliberately conceal or misrepresent facts to auditors. Finally, financial statements are prepared based on judgments and estimates, auditors will not be sure that the information provided is free from error since auditors do not supervise the financial statement construction process from start to finish.