An auditor has set an overall level of acceptable audit risk in respect of a client of 15%. Inherent risk has been assessed at 30% and control risk at 90%.

a)Explain the meaning of a 15% level of audit risk.

b)What level of detection risk is implied by this information?

c)If the level of audit risk were only 7.5%, how would this affect the level of detection risk and how would the audit work be affected by this change?