For the following sets of circumstances, indicate whether the auditor would have a high or low risk of failing to detect these circumstances with appropriate audit procedures. Give reasons for your answers.

a. When the company took a physical inventory on December 31, 19X6, one out of every ten items was miscounted by an average of 5 to 12 percent of its correct amount.

b. The allowance for doubtful accounts was stated at 2 percent of accounts receivable. The allowance should have been stated between 6 and 10 percent of accounts receivable. The dollar amount of accounts receivable is ten times as much as net income.

c. Accounts payable is understated by 3 percent as a result of leaving some accounts off the books at the end of the year. These accounts were not paid until 45 days after the end of the fiscal year. The dollar amount of accounts payable is \(\$ 30,000\), and net income is \(\$ 20,000\).