Question 7 Not yet answered Marked out of The auditor has identified that, due to the way in which inventory is stored in the warehouse, the inherent risk of accuracy valuation and allocation of inventory is high. There are no controls to rely on, so the auditor assesses control risk to be high. John, an audit colleague, has been asked to take a sample of 120 inventory items to test for accuracy, valuation and allocation. He selects the sample using systematic selection. 2.00 Flag question Required Briefly explain to John why his approach to selecting the sample is incorrect. (2 marks)