Question 1 Calculations and Fill in the Blank Auditing standards require the auditor to assess the risk of material misstatement at the overall financial statement level and at the assertion level for classes of transactions and account balances, and to plan the audit in response to those assessed risks. Following are some questions related to audit risk assessment: (1 mark each point) 5 Points a) If an auditor uses the audit risk model for the client company under audit to assess audit risk and audit evidence, where inherent risk is 40%, control risk is 50%, and acceptable audit risk is 20%, the assessed planned detection risk would be (100%). (Complete using a percentage) b) If an auditor assesses inherent risk to be medium, control risk to be low, and acceptable audit risk to be high, the assessed planned detection risk would be (medium). (Complete using one of the following terms: high. medium, or low) c) If an auditor assesses inherent risk to be low, control risk to be low, and acceptable audit risk to be high, the amount of evidence he would plan to gather would be (low). (Complete using one of the following terms: high, medium, or low) d) If an auditor believes the chance of financial failure is low and there is a corresponding decrease in business risk for the auditor. acceptable audit risk would likely to be (increased). (Complete using one of the following terms: increased, decreased or remain the same) e) If the audit assurance rate is 21%, then the level of acceptable audit risk is (79%). (Complete using a percentage)