Question

Elements
a. Engagement risk and Acceptable Audit Risk	Inverse	Direct	No Relationship
b. Assessed Inherent Risk and Planned Detection Risk	Inverse	Direct	No Relationship
c. Materiality and Amount of Substantive Evidence Needed	Inverse	Direct	No Relationship
d. Assessed Inherent Risk and Assessed Control Risk	Inverse	Direct	No Relationship
e. Acceptable Audit Risk and Assessed Control Risk	Inverse	Direct	No Relationship
f. Amount of Substantive Evidence collected and Achieved Detection Risk	Inverse	Direct	No Relationship
g. Actual Inherent Risk and Actual Control Risk	Inverse	Direct	No Relationship
h. Achieved Detection Risk and Achieved Audit Risk	Inverse	Direct	No Relationship

Answer 1

	Particulars	Relation	Reason
1	Engagement risk VS. Acceptable Audit Risk	Inverse	1.Engagement risk means risk associated with the audit engagement
			2. Acceptable audit risk means risk of auditor giving unqualified opinion even there is misstatements
			3.When the engagement risk is more the auditor may not give unqualifed opinion due to misstatements
2	Assessed inherent risk VS. Planned Detection Risk	Inverse	1. Audit Risk = Inherent risk * Control Risk * detection Risk
			2.Inherent risk and control risk together called as Risk of Material mis statements ( RMM)]
			3.If RMM Is More then we will use more substantial procedures in order to reduce risk which ultimately reduces detection Risk and Vice Versa
3	Materiality VS. Amount of Substantive Evidence Needed	Direct	1.When there is more substantive evidence which means supporting evidence the materiality will be more and vice versa
4	Assesed inherent risk VS. Assessed control risk	No Relation	1.There is no relation between control and inherent risk as Control risk causes due to failure of controls where as inherent causes due to other than failure of controls.
5	Acceptable audit risk VS. Assessed Control risk	inverse	Because if control risk means risk due to failure of controls is more then acceptable audit risk will be less and viceversa
6	Amount of substantive risk collected VS. Detection risk	Inverse	1.Because more the substative evidence less will be detection risk means failure to detect risk will be less
7	Actual inherent risk VS. Actual control risk	No Relation	1.There is no relation between control and inherent risk as Control risk causes due to failure of controls where as inherent causes due to other than failure of controls.
8	Achieved detection risk VS. Achieved Audit risk	Direct	1. Audit Risk = Inherent risk * Control Risk * detection Risk
			More the detection risk,more will be audit risk