1- What does a low acceptable audit risk mean for an auditor? Briefly discuss. 2- What effect would larger client size have on acceptable audit risk? Why ? 3- What effect would declining profits and operating cash flows have on acceptable audit risk? Why? 4- If a client has many assets that have to be annually tested for impairment in a country that does not have active and highly efficient markets, what effect would this have on inherent risk? Why? 5- If a client has weak internal controls, what effect would this have on inherent risk ? Why?