Please provide answers next to the questions provided. Most questions can be answered with 3 or less sentences, but please do not exceed 5 sentences.

1- Assume you are testing accounts receivable. List one audit procedure you can complete to assess each of the following risks: acceptable audit risk, control risk, and inherent risk. Be specific. What is needed to assess planned detection risk?

2- With all the other items constant, if the inherent risk is low, how does this impact your materiality level? Why do you think so?