Below are eight independent risk factors:

1. The client lacks sufficient working capital to continue operations.

2. The client fails to detect employee theft of inventory from the warehouse because there are no restrictions on warehouse access and the client does not reconcile inventory on hand to recorded amounts on a timely basis.

3. The company's shares are publicly traded.

4. The auditor has identified numerous material misstatements during prior year audit engagements.

5. The client is one of the industry's largest based on its size and market share.

6. Recent COVID-19 outbreak has casted more doubts on the collectability of accounts receivable.

7. Affected by the recent COVID-19 outbreak, the company has decreased the staff number at the Accounting department to cut costs.

8. The audit plan omits several necessary audit procedures.

Identify which of the following audit risk model components relates most directly to each of the ten risk factors:

*Acceptable audit risk * Control risk *Inherent risk * Planned detection risk

Discuss how the factors affect the particular audit risk model component and how will the planned evidence be affected.