(A)Audit Sampling: dollar-unit sampling Steward White has been appointed to do audit for Zone Quality Meats Limited for the year ended 31 March 2016. When sampling for substantive tests, he uses dollar unit sampling. The initial 10 items from the accounts receivable population of Zone Quality Meats Limited are listed below Population Item Recorded Iten Cumulative Value S 7,857 7.430 820 1.895 10,500 1.000 2,640 4.714 3,769 9.678 7,857 15.287 16,107 18,002 28,502 29.502 32,142 36,856 40,625 50.303 4 6 10 The total of accounts receivable listing is $500,000, with more than 200 customers Required: (a) Explain whether you are more likely to be concemed with testing for overstatement or understatement for the accounts receivable account (2 marks) (b) For dollar unit sampling to be used, the sample size will be 25 and a random start of 8115 has been chosen. Determine which will be the second and third item to be selected (4 marks (c) Steward has undertaken his sampling plan of 25 items and your evaluation of errors reveals that the upper error limit exceeds the tolerable error. Identify the causes of action that Steward has available (4 marks) (A)Audit Sampling: dollar-unit sampling Steward White has been appointed to do audit for Zone Quality Meats Limited for the year ended 31 March 2016. When sampling for substantive tests, he uses dollar unit sampling. The initial 10 items from the accounts receivable population of Zone Quality Meats Limited are listed below Population Item Recorded Iten Cumulative Value S 7,857 7.430 820 1.895 10,500 1.000 2,640 4.714 3,769 9.678 7,857 15.287 16,107 18,002 28,502 29.502 32,142 36,856 40,625 50.303 4 6 10 The total of accounts receivable listing is $500,000, with more than 200 customers Required: (a) Explain whether you are more likely to be concemed with testing for overstatement or understatement for the accounts receivable account (2 marks) (b) For dollar unit sampling to be used, the sample size will be 25 and a random start of 8115 has been chosen. Determine which will be the second and third item to be selected (4 marks (c) Steward has undertaken his sampling plan of 25 items and your evaluation of errors reveals that the upper error limit exceeds the tolerable error. Identify the causes of action that Steward has available (4 marks)