9-34 (OBJECTIVES 9-5, 9-7,9-8) John Peter is planning the audit of the investments account for ABC Company. ABC invests excess cash at the end of the summer sales season through an investment manager who invests in equity and debt securities for ABC's account. John has assessed the following risks as low, medium, or high for the relevant balance-related audit objectives in the investment account. Risk of Material Misstatements Balance-Related Acceptable Planned Audit Objectives Audit Risk Inherent Risk Control Risk Detection Risk Existence Medium Medium Medium Completeness Medium Low Medium Accuracy Low High Medium Classification Medium Low Low Cut-off Medium Medium Low Detail tie-in Low Medium Low Realizable value Low High Medium Rights and obligations Medium Medium Low a. Describe each of the four identified risks in the columns of the table above. b. Fill in the blanks for planned detection risk for each balance-related audit objective using the terms low, medium, or high. c. Which audit objectives require the greatest amount of evidence and which require the least? d. Through audit testing, John finds that the investment manager's controls over re- cording purchases and sales of securities are not as effective as originally assessed What should John do? Required