You are in charge of the audit of Hipp Supply Company for the year ended December 31. In prior years, your firm observed the inventory and tested compilation and pricing. Various misstatements were always found. About 10 percent of the dollar value of the inventory is usually tested. This year you have established the tolerable misstatement to be $5,000. The client's book value is $97,500. The client has 960 inventory items,? P-9652