Inventory has 1,000SKU items and a book value of $300,000. You test a sample of 250SKU items having a book value of $75,000. The audited value of your sample is $68,000. If tolerable error is $30,000, would you conclude that inventory is Materially Overstated Not Materially Overstated Materially Understated Need Additional Evidence Question 10 Audit Sampling: Payroll expense has 1,000 entries and a book value of $500,000. You test a sample of 400 SKU items having a book value of $200,000. The audited value of your sample is $201,000 which indicates an error of $1,000 in the sample. If tolerable error is $50,000, would you conclude that payroll expense is Need additional evidence Materially Understated Not materially understated Materially Overstated