Below are six situations that involve the audit risk model as it is used for planning audit evidence gathering requirements.

Situation

Risk 1 2 3 4 5 6

Acceptable audit risk 5% 5% 5% 5% 1% 1%

Inherent risk 100% 40% 60% 20% 100% 40%

Control risk 100% 60% 40% 30% 100% 60%

Planned Detection risk --- --- --- --- --- ---

Required:

1- Calculate the planned detection risk for each of the above six situations.

2- Identify and explain which situation of these 6 situations requires the greatest amount of evidence and which situation requires the least amount of evidence?