a. The following are two situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory. Using your knowledge of the relationships among the foregoing factors, state the effect on planned detection risk (increase or decrease) and planned evidence (increase or decrease) (4 marks) 1 Low Low Low 2 High High High Risk Audit risk Inherent risk Control risk Planned detection risk Planned evidence from substantive procedures b. For each of the following independent factors, identify the main type of risk (audit risk, business risk, inherent risk, control risk, or detection risk) they most directly relate to or are influenced by: (6 marks - 2 marks each) Type of Risk No 1 2 Independent Statements Accounts consisting of amounts derived from accounting estimates Selection of an inappropriate audit procedure Productivity improvement efforts and cost reduction activities have eroded the segregation of duties and increased staff workloads in a client company 3