Martin & Co., a CPA firm, has adopted the following specific percentages for the indicated qualitative levels of risk:

Minimum 30%

Moderate 50%

Maximum 100%

Martin & Co. has also decided to use a 5 percent audit risk level for all audit engagements and to not make a separate assessment of inherent risk.

Required: 

a. A staff auditor of one of Martin & Co.'s audit engagements has assessed control risk as minimum and other procedures risk as moderate in planning confirmation of accounts receivable. What is the allowable detection risk for the confirmation procedure? 

b. If the staff auditor had assessed both control risk and other procedures risk as moderate, what would the allowable detection risk be for the confirmation procedure? 

c. What would the allowable detection risk be if the staff auditor had assessed the other component risks as minimum? 

d. The staff auditor wonders why the specific percentage associated with minimum risk is 30 percent. Why do you think Martin & Co. did not adopt risk levels of 5 percent or 10 percent for minimum risk?