9-37 (08jectives 9.5, 9.9) Using the audit risk madel, sate the effect on control risk, inherent risk, acceptable audit risk, and planned evidence for each of the following independent events. In each of the events a. through j-circle one letter for each of the three independent variables and planned evidence: I= increase, D= decrease, N= no effect, and C= cansot determine from the information provided. Part 2 / The AuDit Pnocess b. The auditor decided to set assessed control risk at the maximum (it was previously assessed below the maximum): CimirulribklaberentriskIDNCIDNCAurptableawulitriskPlannedevidenceIDNCIDNC c. The client acquired a new subsidiary locared in Lraly: ConterolriskInberentriskIDNCIDNCAcceptableauditriskPlannedevidenceIDNCIDNC d. The account balance increased materially from the preceding year without apparent reason: e. You determined through the planning phase that working capital, debt-to-equity ratio, and other indicators of financial condition improwed during the past year: ControlriskInberentriskIDNCIDNCAcceptableatiditriskPlannedcvidenceIDNCIDNC f. The client's management materially decreased long-term contractual debe: ControlrisklaberentriskIDNCIDNCAcceptableatiditriskPlannedevidenceIDNCIDNC g. The client began selling products online to customers through its website during the year under audit. The online customer ordering process is not integrated with the company's accounting system. Client sales staff prist out customer oeder information and enter those data into the sales accounting system: ControlrisklnberentriskIDNCIDNCAcceptableauditriskPlannedevidenceIDNCIDNC b. This is the second year of the engagement, and there were few misstatements found in the previous year's audit. The auditor also decided to increase reliance on internal control: ControlrisklaberentriskIDNCIDNCAcceptableauditriskPlannedevidenceIDNCIDNC i. In discussions with management, you conclude that munagement is planning to sell the business in the next few months. Because of the planned changes, several ley accounting personnel quit several months ago for alternative employment. You also observe that the gross margin percent has significantly increased conpared with that of the preceding year: Controlrisklnberentrisk1DNCIDNCAcceptableauditriskPlannedevidenceIDNCIDNC 1. There has been a change in several key managenent personnel. You belicve that management is somewhat lacking in personal integrity coenpared with the previous management. You believe it is still appropriate to do the audit: Control risk IDNCIDNCAcceptableauditriskPlannedevidenceIDNCIDNC