Briefly describe the process (e.g., explain one of the columns).

Scenario A - Controls appear strong; Auditor decides to test Scenario B - Scenario C- controls to extent possible Controls appear Controls appear strong, but auditor weak * chooses not to test 1. At what level is planned assessed level of control risk? (low; moderate; maximum) LOW Maximum Maximum 2. Describe the scope of tests of control that will be performed. (none; tests performed) Test Perforemed None None Results of Tests of Controls: A(1) - Controls A(2) - Controls are A(3) - Controls are found to be strong moderately ineffective (operating effective effectively) N/A N/A Moderata Highest 3. At what level is the LOW assessed level of control risk? (lowest; low; moderate; high; highest) Highest Highest 4. (a) What is the acceptable level of detection risk? (lowest; low; moderate; high; Moderate highest) Low Lowest Lowest Lowest 4. (b) Describe the scope (nature, timing, extent) of substantive tests. (highest; Moderate high; moderate; low; lowest) High Highest Highest Highest * Inherent risk is assessed at the maximum level; preliminary evaluation of controls is based on inquiries of management Scenario A - Controls appear strong; Auditor decides to test Scenario B - Scenario C- controls to extent possible Controls appear Controls appear strong, but auditor weak * chooses not to test 1. At what level is planned assessed level of control risk? (low; moderate; maximum) LOW Maximum Maximum 2. Describe the scope of tests of control that will be performed. (none; tests performed) Test Perforemed None None Results of Tests of Controls: A(1) - Controls A(2) - Controls are A(3) - Controls are found to be strong moderately ineffective (operating effective effectively) N/A N/A Moderata Highest 3. At what level is the LOW assessed level of control risk? (lowest; low; moderate; high; highest) Highest Highest 4. (a) What is the acceptable level of detection risk? (lowest; low; moderate; high; Moderate highest) Low Lowest Lowest Lowest 4. (b) Describe the scope (nature, timing, extent) of substantive tests. (highest; Moderate high; moderate; low; lowest) High Highest Highest Highest * Inherent risk is assessed at the maximum level; preliminary evaluation of controls is based on inquiries of management