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Chapter 4 1. For each case, calculate planned [desired) detection risk: Case 5 1% Audit risk Inherent risk Control risk Case 1 1% 40% 60% Case 2 1% 60% 40% Case 3 5% 40% 60% Case 4 1% 40% 20% 40% 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. III C. Now explain, without referring to the audit risk model