1 (20 Points) For the audit of Sun Company, the audit risk was set at 5%. Based on initial assessment, inherent risk at 80% and control risk at 70% Based on the above compute the following Risk of Material Misstatement Detection Risk Subsequently, based on tests of controls, the inherent risk was set at 40% and control risk at 50% Compute detection risk based on this. What is the effect of the revision in detection risk on the nature, timing and extent of substantive testing? What is the purpose of substantive testing? Define Audit Risk