Question 6 ( 7 marks ) John is the owner of a small manufacturing company . In prior years , Your firm has conducted a review engagement of the company . However , this Year , John obtained a loan from the federal business development bank , and is required to have an audit of his financial statements . When You started asking about controls and procedures at the company , John got pretty upset . " All You need to be concerned about is the numbers ! Why are You asking all of these questions ? It takes too much time away from my staff to answer these questions ! Just check the numbers and let us get on with our work ! " "I'ou calmed him down a bit , and reminded him about the general discussion that Occurred with the engagement letter ."You invited him for coffee to briefly explain the following items :" 1 . Why auditors are both i. ; Concerned about internal controls and in . ! Required to audit internal controls . 13 mark's*!* 2. What You need to do to understand internal controls 1 2 marks ; 3. What You will do once You have documented your understanding of internal controls 12 marks! Required Explain what You would say to John. Question 7 ( 5 marks ) 1 . Describe three types of sample selection methods commonly associated with statistical audit sampling . 13 marks ; 2. Explain the difference between sampling with replacement and without replacement . Which method is more common in audit practice ? !' 1 mark ) 3. Describe the steps involved in systematic sampling . ('1 mark; End of Assignment