Cora hardware is a wholesaler of cabinetry hardware (knobs and pulls) for residential use. Cora’s annual sales are $4 million and the year-end accounts receivable balance is $450 000. The company has approximately 5 000 sales transactions each year. Performance materiality for the audit has been established at $15 000. Cora has approximately 120 different customers. These customers fall into three distinctive categories:
1) Three large homebuilders that constitute 80 percent of total sales and 80 percent of total accounts receivable;
2) 100 interior designers that constitute 15 percent of total sales and 20 percent of total accounts receivable. Due to collectibility concerns, Cora does not extend credit of more than $2 000 for interior designer.
3) Walk-in customers who pay by credit or debit card at the time of pick up and constitute approximately 5 percent of sales. For warranty tracking purposes, a separate order and invoice is created for each different residential address. If a builder orders for 15 different homes at one time, 15 different invoices are created. On average the hardware for one home typically costs between $600 and $1 000. Payment terms are net 30 days for all customers (except for walk-in customers who pay by credit or debit card).
a. For each of the audit procedures indicated below complete the chart, recommending the one of the following sample selection methods:
b. Probabilistic (Simple Random)
c. Non-probabilistic (directed, block, or haphazard)
d. Stratified sampling
e. Neither
f. A combination of probabilistic and non probabilistic

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Audit Procedure Select accounts receivable balances to confirm and circulate confirma- tions. (existence and accuracy) Inspect sales invoices and compare the details (quantity, price, taxes, total sale) recorded in the sales journal to the supporting documents (shipping documents, customer order, and invoice). (accuracy, occurrence) Inspect sales invoices and verify that credit was approved by the credit department prior to shipment and noted on the customer's order. (valuation of a/r) Inspect sales transaction and ensure that the date on the sale corresponds to the shipping document. (cutoff) Perform subsequent receipts testing for accounts receivable balances to determine reasonableness of allowance for doubtful accounts (AFDA) account. (valuation of a/r) Calculate accounts receivable turnover and compare to prior year. Discuss with controller the method employed to estimate the AFDA. Enquire that the controller reviews the aged receivable listing on a monthly basis. Recommend Sampling Method Explain the method selected and why it is most appropriate.