You are the audit junior assigned to the audit of Hemsworth Co. You are ready to commence the audit of payables and receivables. The following procedures are listed in the audit plan: Payables Trace a sample of invoices listed in the payable’s ledger back to the purchase invoice to ensure they have been recorded at the correct amount in the ledger. Start at a random point and test. Receivables Identify all receivables balances over $200 and for those customers, inspect after date cash receipts to identify whether payment has been received post year-end. 1 In respect of the payables testing, which of the following sampling methods is described? A Monetary unit sampling B Random sampling C Systematic sampling D Haphazard sampling 2 In respect of the payables testing, if the sampling method stated to test every 20th item, which sampling method would be described? A Monetary unit sampling B Random sampling C Systematic sampling D Block sampling 3 In respect of the receivables testing, which of the following statements is true? A Testing balances over $200 will ensure a sufficiently large sample size is tested B Testing all invoices over $200 represents statistical sampling C This method demonstrates the use of stratified sampling D This method is a form of selection 4 During the testing of Hemsworth's receivables and payables balances, several misstatements were found. Which of the following is the most appropriate initial response your audit firm should take? A Report the matter to the client B Extend the sample C Suggest the audit opinion is modified as a result of material misstatement D Discuss the issue with the audit senior or audit manager 5 When deciding whether to use sampling which of the following should be considered? (1) Completeness of the population (2) Appropriateness of the population (3) The size of the population (4) The time the auditor has available to perform the procedures A 1, 2 and 3 only B 2, 3 and 4 only C 1 and 4 only D All of them