Question 3 (22 marks) Following are six situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of accounts receivable. Situation Hich Audit risk Inherent risk Medium Medium Low Low High Low High Medium Low High Hash Control risk Medium High Low LOW Medium High Detection risk Audit evidence Required a. Copy the above table to your answer sheet and fill in the highlighted blanks for detection risk and audit evidence using the terms low, medium, or high (12 marks) b. Using your knowledge of the relationships among the foregoing factors, state the effect on both detection risk and audit evidence (no effect, increase or decrease) of changing each of the following five factors, while the other three remain constant 1. A decrease in audit risk 2. A decrease in control risk 3. A decrease in detection risk 4. A decrease in inherent risk 5. A decrease in inherent risk and an increase in control risk of the same amount (10 marks) Effect on Change in factor (list out the item numbers) Effect on audit evidence 2