Please solve a, b, c and d

Actual 6. SER 7. CUER 15-34 (Objective 15-5 0) Data Analytics For the audit of the financial statements of Mercury Fifo Company, Stella Mason, CPA, has decided to apply nonstatistical audit sampling in the tests of controls and substantive tests of transactions for sales transactions [see Figure 15-2 0) (p. 509) for examples of the types of attributes tested]. Based on her knowledge of Mercury's operations in the area of sales, she decides that the EPER is likely to be 2 percent and that she is willing to accept a 10 percent risk that the true population exception rate is not greater than 6 percent. Given this information, Mason selects a random sample of 100 sales invoices from the 5,000 generated during the year and examines them for exceptions. She notes the following exceptions in her audit schedules. There is no other documentation. Invoice No. Comment 5028 Sales invoice amount was incorrect because an incorrect product number was entered. 6791 Quantity on invoice did not match quantity on shipping document and customer order. 6810 Shipping information for a sale of merchandise could not be located. 7364 Sales invoice for $2,875 has not been collected and is 6 months past due. 7625 Client unable to locate the sales invoice. 8431 Invoice was dated 3 days later than the date entered in the sales journal 8528 Client was unable to locate the customer order, although the invoice has been paid. 8566 Billing is for $100 less than it should be due to an unintentional pricing error. No indication of internal verification is included on the invoice. 8780 Client unable to locate the shipping document. 9169 Customer was not included in the approved customer database, but the sale was for only $47.65. 9974 Lack of evidence of verification of pricing information on sales invoice. Required a. Which of the preceding should be defined as an exception? b. Explain why it is inappropriate to set a single acceptable TER and EPER for the combined exceptions. . Calculate SER for each attribute tested in the population. (You must decide which attributes should be combined, which should be kept separate, and which exceptions are actual exceptions before you can calculate SER.) 1. Calculate TER - SER for each attribute and evaluate whether the calculated allowance for sampling risk is sufficiently large given the 10 percent ARO. Assume TER is 6 percent for each attribute