Audit Risk Model Given the information that appears in each of the following independent scenarios, evaluate whether the identified constructs should increase (I), decrease (D), not change (N), or the direction of change cant be determined (C) and circle the appropriate response.

1. The Audit Committee has become disengaged from its corporate governance responsibilities, and management increasingly emphasizes the need to meet analysts EPS forecasts to employees.

Control Risk I D N

Inherent Risk (including FFR risk) I D N

Acceptable Detection Risk I D N C

Planned Audit Effort I D N C