The following three risk situations have been identified in the audit of Tatua.

		Situation
	1	2	3
Acceptable Audit Risk	7%	6%	6%
Inherent Risk	30%	30%	50%
Control Risk	40%	50%	25%
Planned Detection Risk	?	?	?

Required:

1. Calculate the planned detection risk for each situation. (3 marks)

Provide your answer for question (a) in the below table.

		Situation
	1	2	3
Provide your workings here
Planned detection risk

2. In which situation auditors need to do more audit procedures to

collect evidence? (2 marks)

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