One form of the risk model is AAR = IR x CR x PDR AAR Acceptable Audit Risk CR = Control risk IR = Inherent Risk evaluate planned evidence) PDR Planned Detection Risk (note you are asked to I = Increase N = No Effect D = Decrease C = Cannot determine Company changed from privately held to publicly held. Slowing sales have increased the potential for inventory obsolescence. Indicate the effect on planned evidence: Increase O Decrease No change O Cannot determine