CTI prices its inventory at FIFO. You select a random sample of 35 items for price testing and nd the following results as of year-end 2025. The total book value of inventory is $1,027,000. You should assume that errors exist in the unsampled portion of the population in the same proportion as in the sample. Inventory Inventory Quantity Price Cost per Quantity Price Cost per SKU # per Client per Client Client per Auditor per Auditor Auditor 1 10001 6 $ 1,252.00 $ 7,512.00 6 $ 1,252.00 $ 7,512.00 2 10269 4 $ 1,275.00 $ 5,100.00 4 $ 1,275.00 $ 5,100.00 3 10537 7 $ 1,279.00 $ 8,953.00 7 $ 1,279.00 $ 8,953.00 4 10805 8 $ 2,200.00 $ 17,600.00 8 $ 1,200.00 $ 9,600.00 5 11073 3 $ 1,400.00 $ 4,200.00 3 $ 1,400.00 $ 4,200.00 6 11341 8 $ 1,410.00 $ 1 1,280.00 8 $ 1,410.00 $ 1 1,280.00 7 11609 4 $ 1,400.00 $ 5,600.00 4 $ 1,400.00 $ 5,600.00 8 11877 9 $ 810.00 $ 7,290.00 9 $ 5 10.00 $ 4,590.00 9 12 145 10 $ 750.00 $ 7,500.00 10 $ 500.00 $ 5,000.00 10 12413 9 $ 750.00 $ 6,750.00 9 $ 750.00 $ 6,750.00 11 12681 8 $ 800.00 $ 6,400.00 8 $ 800.00 $ 6,400.00 12 12949 7 $ 1,800.00 $ 12,600.00 7 $ 800.00 $ 5,600.00 13 13217 4 $ 2,750.00 $ 11,000.00 4 $ 1,750.00 $ 7000.00 14 13485 $ 2,750.00 $ 13,750.00 $ 1,750.00 8,750.00 15 13753 6 $ 800.00 $ 4,800.00 6 $ 800.00 $ 4,800.00 16 14021 N $ 800.00 $ 1,600.00 N $ 800.00 $ 1,600.00 17 14289 W $ 900.00 $ 2,700.00 $ 900.00 $ 2,700.00 18 14557 1 $ 900.00 tA 900.00 $ 900.00 900.00 19 14825 5 $ 1,000.00 $ 5,000.00 5 $ 900.00 $ 4,500.00 20 15093 18 $ 1,000.00 $ 18,000.00 18 $ 1,000.00 $ 18,000.00 21 15361 16 $ 1,250.00 $ 20,000.00 16 $ 1,000.00 $ 16,000.00 22 15629 14 $ 1,250.00 $ 17,500.00 14 $ 1,000.00 $ 14,000.00 23 15897 9 $ 2,000.00 $ 18,000.00 9 $ 1,750.00 $ 15,750.00 24 16165 $ 2,000.00 $ 10,000.00 $ 1,750.00 $ 8,750.00 25 16433 N $ 3,000.00 $ 6,000.00 N $ 3,000.00 $ 6,000.00 26 16701 8 $ 250.00 $ 2,000.00 8 $ 250.00 $ 2,000.00 27 16969 8 $ 275.00 $ 2,200.00 8 $ 275.00 $ 2,200.00 28 17237 8 $ 270.00 $ 2,160.00 8 $ 270.00 $ 2,160.00Evaluate the implications of the evidence you noted above. 1. What are the implications of your direct ndings for fair presentation in the nancial statements? You may assume that it is your best guess that errors found in your sample are representative of errors that would exist in items that you did not sample. 2. Based on your ndings, what additional audit procedures should be performed, if any? Align left 0 Word