The $8$ questions below relate to the audit risk equation. Each question is worth $\frac{1}{2}$ point.

Suppose an audit client's internal controls

are poor. All things being equal, will this

increase, decrease or have no effect on

Aar?

Suppose an auditor does lots and lots of

testing. All things being equal, what effect

will this have on detection risk?

If an audit client's internal controls are

poor, will this increase, decrease, or have

no effect on inherent risk?

If AAR is set at a high level, will this

increase, decrease or have no effect on

the amount of evidence required?

If $A$ AR is set a low level, will this increase.

decrease, or have no effect on Detection

Risk?

Suppose an audit client's internal controls

are good. All things being equal, will this

increase, decrease, or have no effect on

the number of transactions which will be

selected for testing?

If inherent risk is set at a low level, will

this increase, decrease, or have no effect

on the amount of evidence needed.

For engagements in which the auditor has

a low probability of being sued later on$,$

what effect will this probatky tave on

AAR?

Increase

$[$Choose$]$

increase

Decrease

No Effect

Decrease

Decrease $$