在审计风险模型的三个要素中，前两种风险即固有风险和控制风险是委托人的任务，审计人员对其没有控制权。检测风险是审计人员的职责。但他必须彻底调查财务报表.。审计风险与上述两种风险要素的审计风险模型呈负相关。如果有更大程度的固有的或控制在一个公司的风险，又有高的机会公司有虚假陈述。如果客户的内部控制不充分的重大错报风险可能会很高，如果管理层希望国家账户余额错误，或当交易的性质自然是困难的。因此，审核员将不得不在测试帐户余额方面做更多的工作.。
还有，审计诉讼风险可以产生两个来源：第一是无法识别重大错报。二是与风险客户的关联。如果他们的审计师可以增加他们的审计工作，然后他们可以降低重大错报。增加审计工作将导致更高质量的审计，从而导致更多的审计费用。而不是增加的努力，核数师也可以通过向客户承担这一风险收取更多的费用承担这种风险。
然而，摩根和斯托肯（1998）认为，审计收费不完全复制的诉讼风险。当这些参数结合在一起，可以预测，更大的诉讼风险的审计与更多的审计费用。由于更多强调的是相关的审计费用，大部分在这方面做的实验研究的重点是代理诉讼风险是否与审计费用。
Among the three elements of Audit Risk model, the first two risks i.e. inherent risk and control risk are the tasks of a client and the auditor has no control over it. The detection risk is the function of the auditor. Yet he has to investigate the financial statements thoroughly. The detection risk and the above mentioned two risk elements of audit risk model are inversely related. If there is a greater extent of inherent or control risk in a company, then there is high chance of the company having misstatements. The risk of material misstatement is likely to be very high if the clients’ internal controls are not adequate, or if the management wants the state the account balance wrongly, or when the nature of the transactions are naturally difficult. As a result, the auditor will have to work more in testing the account balances .
There are two sources from which Auditor litigation risk can arise: The first is the inability to recognize a material misstatement. The second is the association with a risky client. If they auditors can increase their audit effort, then they can decrease the material misstatement. Increased audit effort would result in greater quality of audit and so leads to more audit fees. Instead of increasing the effort, the auditor can also pass this risk to their clients by charging more fees for bearing this risk.
However, Morgan and Stocken (1998) argued that audit fees do not entirely replicate the risk of litigation. When these arguments are combined together, it can be predicted that greater litigation risk of auditor is related to more audit fees. Due to the fact that more emphasis is related to audit fees, most of the experimental research done in this area is focused on whether proxies for litigation risk are related with audit fees.