The audit staff assigned to audit Commission on Sales Expenses totaling $2,000,000 used Analytical Procedures to audit said balance. Commissions are paid to the Sales Representatives that work for the company. They are required to sign a new employment contract every year which details the terms of their engagement. Normally commissions are paid at a rate of 10% on sales generated by each Sales Representative. Total Sales for the year amounted to $20,000,000 of which 50% was generated by the Sales Representatives.

Required: Perform a Reasonableness Test on the Commission on Sales Expense balance. Describe all steps involved and advise what the auditor should do based on the results of the test