Your friend, Alexei Antropov, has recently began working for an auditing firm and he wants your advice regarding some tests of sales transactions that he is currently undertaking with respect to one of his clients. He has been careful not to disclose to you the name of his client so as not to breach confidentiality.
Alexei selected a haphazard sample of 30 sales with a total book value of $150,000. In his sample, he found a total of $1,000 in net overstatement errors. The total sales balance per books is $20 million. Overall materiality for the engagement is $600,000. Tolerable error for sales is $140,000. The sample results indicate that Alexei's best estimate of total misstatement in sales is $70,000.
Required
Could Alexei safely conclude that no additional audit work is needed in this area? Support your answer.