You are auditing Northeastern Food Wholesalers (NFW). NFW purchases a full line of various grocery products and sells them to independent grocery stores in six Northeastern states. NFW has one distribution center and approximately 900 customers. On average NFW turns its inventory approximately every 21 days, and it takes approximately 35 days to collect receivables.

Required

a. Identify a potential application for audit data analytics in the audit of NFW. Explain the application and the assertion(s) tested by the application.

b. Identify a potential application for audit sampling in the audit of NFW. Explain the application and the assertion(s) tested by the application.