One form of the risk model is AAR = IR x CRX PDR AAR - Acceptable Audit Risk CR - Control risk IR Inherent Risk PDR = Planned Detection Risk (note you are asked to evaluate planned evidence) 1 = Increase D - Decrease N - No Effect C Cannot determine Company changed from privately held to publicly held. Slowing sales have increased the potential for inventory obsolescence. Indicate the effect on control risk: Increase O Decrease No change O Cannot determine