7-45. Assune that you have been hired by Willington, CPA, as a new staff assistant. He informan you that his approach to audils has always been to assess control risk at the maximam aod peyform all the substantive procedures he considers necessary. However, he has recently read an article in The Journal of Accountancy that indicates that a more efficient autit inay sornctians be achieveal by perforwing some tests of controls snd thercby assessing control risk at a lower level. Willington shows you the following table that came from the aticle: Willington understands that the tabie is only for illusiralive purponses and that other "io bctween" levels of the various risks are possible, but he wants you to nse the ones in the table to help him inderstand the tratic offs between tests of controls and substantive prox:dures. He understands that these risks would be assessed at the asserticen level for the warour accounts, but he wants to berier tenderstand how the various tests performed in an audil "tic together." To kecp things simple, he says to assume that inherent risk is at the miximum level in all cases. He has roughed out a tabie that he wants you to complete for the following three cases: Case A : Coatrols, as described by ranagement, appear strong, and Willington wishtes to test then to the exient prssible. In this case, he realizes that the results of the tests of controls nay reveal that the controls are not operating effectively. Accortingly, Case A has three subctases: A(1) Controls are found to be strong and operate effectively. A(2) Controis are found to operate moderately effectively. A(3) Controls, despite rnanagement's description, are found to be incffective. Case B: Controls, as described by management, appear strong, but Willington wishes to use his old approach of not testing them. Case C, Controls, as described by management, appear weak