7.34 Below are six situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. REQUIRED a Explain what 'low', 'medium' and 'high' mean for each of the four risks and the implications for planned evidence. b Fill in the blanks for planned detection risk and planned evidence using the term 'low, 'medium' or high: c Using your knowledge of the relationships between the foregoing factors, state the effect on planned evidence (increase or decrease) of changing each of the following four factors, while the other three remain constant: (1) an increase in acceptable audit risk (2) an increase in control risk (3) an increase in planned detection risk (4) an increase in inherent risk (5) an increase in inherent risk and a decrease in control risk of the same amount. 7.34 Below are six situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. REQUIRED a Explain what 'low', 'medium' and 'high' mean for each of the four risks and the implications for planned evidence. b Fill in the blanks for planned detection risk and planned evidence using the term 'low, 'medium' or high: c Using your knowledge of the relationships between the foregoing factors, state the effect on planned evidence (increase or decrease) of changing each of the following four factors, while the other three remain constant: (1) an increase in acceptable audit risk (2) an increase in control risk (3) an increase in planned detection risk (4) an increase in inherent risk (5) an increase in inherent risk and a decrease in control risk of the same amount