^{auditing question}

D Question 4 2 pts You are auditing sales of West Lid (West). During the year, Wild West recorded 6,000 sales transactions and recognised sales revenue of $60,000,000. The company also earned $5,000,000 in services fees. You decide to use dollar unit sampling. You use systematic sampling with a random start. You use a random number generator to determine the starting point of 78,500. You find that the there is an overstatement of sales in the sample of $10,000. You conclude that there is a projected error of $145,000. The sampling interval is $300,000. Materiality for the audit of sales is allocated at the rate of .5% of sales revenue. You prepare the table below showing the cumulative total of the first 5 invoices Required: Identify (by Invoice No.) the first and second items selected? Note: To answer this question please write the invoice number of the first Invoice selected followed by the word "first" and below that write the invoice number of the second Invoice selected followed by the word "second". Invoice No. Amount ($) Cumulative Total ($) Show all Xthe first > invoices Required: Identify (by Invoice No.) the first and second items selected? Note: To answer this question please write the invoice number of the first Invoice selected followed by the word "first" and below that write the invoice number of the second Invoice selected followed by the word "second". Invoice No. Amount ($) Cumulative Total ($) 20100001 50,000 50,000 20100002 80,000 130,000 20100003 130,000 260,000 20100004 120,000 380,000 20100005 40,000 420,000