A staff member on your audit team has performed a portion of the audit plan for the audit of ABB, Inc., an issuer. The procedures involved include selecting a random sample of $50$ purchase invoices from throughout the year and comparing them to related support. As senior on the engagement, you will now review various points made by the staff auditor.

ABB records purchases when it has received the goods and been billed by the vendor $($vendor$\text{'}$s invoice$).$ It uses a periodic inventory valuation method in which quantities of inventories and costs are updated at the end of each year.

The materiality for the audit has, at this point, been set at $$60,000.$

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