* Your answer is incorrect. Fred Saros is auditing cash payments for OGA, a large supermarket. OGA deals with several very large corporate suppliers, which expect payment by electronic funds transfer within three business days of delivery. Other large suppliers will accept cheques or electronic funds transfers on terms of 14 days, and small suppliers receive cheques with payment terms of 30 days. Other regular, large cash payments include wages (paid weekly by electronic funds transfer from a wages imprest account), utilities (electricity accounts are paid monthly by cheque), cleaning (paid monthly by cheque), and rent (paid monthly by electronic funds transfer). In addition, there are irregular payments for items such as maintenance, fixtures purchase and lease, and vehicle running costs. All cash payments are processed in the central office after the required set of documents has been assembled and checked by two junior accounts staff. Payments are authorized by a senior accountant, and electronic funds transfer authorizations and cheques are countersigned by the chief accountant (except if he is on holidays, when another member of the accounting staff performs this task). Journals and ledgers are maintained by staff not involved in cash payment processing. Fred needs to test controls over cash payments and has planned to make extensive use of sampling. Which of the following are false? (Several choices may be correct.) Fred must gain an understanding of controls over cash payments and identify the controls for each type of potential misstatement, or what can go wrong" (WCGW). O Fred should define the population as the cheques written during the year. Fred would then sample from the instances of each control, as required. All cash payments are based on a set of documents assembled and checked by the accounting staff; Fred would need to regard all these sets of documents as a population and would sample a number of sets of documents to test if the documents were assembled correctly and checked as required. Because Fred is using a sample, there is no non-sampling risk. An example of sampling risk for Fred would be if Fred was careless and failed to note that the cheques were not countersigned by the chief accountant. Fred would also sample from the processed cash payment transactions and test the documents and authorizations on which the transactions are based