Homework Package 2:00 Class Fall 2021 Chapter 4 September 1. For each case, calculate planned (desired) detection risk: Case 1 Case 2 Case 3 Case 4 Audit risk 1% 1% 5% 1% Inherent risk 40% 60% 40% 30% Control risk 60% 40% 60% 20% Case 5 1% 30% 40% II. Define the terms: 1. Audit risk, 2. Control risk, and 3. Inherent risk. State whether Detection Risk varies directly or indirectly with each risk. III. Contrast Case 4 with Case 5. III A. Would the auditor have to do more or less substantive testing in case 5 compared to case 4? III B. Explain, by referring to the audit risk model. WHIC. Now explain, without referring to the audit risk model