Following are six situations that involve the audit risk model as it is used for planning audit evidence requirements in the audit of inventory.

	Situation
Risk	1	2	3	4	5	6
Acceptable audit risk	Medium	Low	High	High	High	Low
Inherent risk	Medium	Low	Low	High	Medium	High
Control risk	Medium	High	Low	Low	Medium	High
Planned detection risk
Planned evidence

Explain what low, medium, and high mean for each of the four risks and planned evidence.

Fill in the blanks for planned detection risk and planned evidence using the terms low, medium, or high.

Using your knowledge of the relationships among the foregoing factors, state the effect on planned evidence (increase or decrease) of changing each of the following five factors, while the other three remain constant:

A decrease in acceptable audit risk

A decrease in control risk

A decrease in planned detection risk

A decrease in inherent risk

A decrease in inherent risk and an increase in control risk of the same amount