Risk Acquisition and Payment Cycle Some misstatements Sales and Collection Cycle Few misstatements Capital Acquisition and Repayment Cycle Many misstatements Misstatement Expectation Inherent Risk Level Internal Control Effective- High effectiveness High effectiveness Low effectiveness ness Low willingness Low willingness Low willingness Control Risk Level Acceptable Audit Risk Assessment Acceptable Audit Risk Level Planned Detection Risk Planned Audit Evidences a. Fill in the blanks for planned detection risk and planned evidence using the terms low, medium, or high. (30 points, 2 points per each cell) b. Please explain the meaning of "Acceptable Audit Risk Level" being "high" (20 Points, 150 words minimum) ACT430: Auditing In-Class Assessment 2- Individual Fal 2021 31 Page