The 2,620 inventory items described in question 9-6 are listed on 44 inventory pages with 60 lines per page. There is a total for each page. The client’s data are not in computer-readable form, and the CPA firm does not have a computer terminal available. Describe the three ways in which a dollar unit sample can be selected in this situation. Explain which method is most likely to be followed here.

Question 9-6:

An auditor is determining the appropriate sample size for testing inventory valuation using dollar unit sampling. The population has 2,620 inventory items valued at \($12,625,000.\) The allowable understatement or overstatement is \($500,000\) at a 90% confidence level. No errors are expected in the population. Calculate the preliminary sample size u§ing a 100% average error assumption.