Question 3 (50 Points) Acquisition and Payment Cycle Inventory and Warehousing Cycle Some misstatements Many misstatements Capital Acquisition Risk and Repayment Cycle Few Misstatement Expectation misstatements Inherent Risk Level Internal Control Effective- High ness effectiveness Control Risk Level Acceptable Audit Risk Assessment Low willingness Acceptable Audit Risk Level Planned Detection Risk Planned Audit Evidences High effectiveness High effectiveness Low willingness Low willingness a. Fill in the blanks for planned detection risk and planned evidence using the terms low. medium or high. (30 points, 2 points per each call) b. Please explain why "Acceptable Audit Risk Level should be "low. (20 points. 150 words minimum) HALUCINA Assessment and 20 31 Question 3 (50 Points) Acquisition and Payment Cycle Inventory and Warehousing Cycle Some misstatements Many misstatements Capital Acquisition Risk and Repayment Cycle Few Misstatement Expectation misstatements Inherent Risk Level Internal Control Effective- High ness effectiveness Control Risk Level Acceptable Audit Risk Assessment Low willingness Acceptable Audit Risk Level Planned Detection Risk Planned Audit Evidences High effectiveness High effectiveness Low willingness Low willingness a. Fill in the blanks for planned detection risk and planned evidence using the terms low. medium or high. (30 points, 2 points per each call) b. Please explain why "Acceptable Audit Risk Level should be "low. (20 points. 150 words minimum) HALUCINA Assessment and 20 31