Your audit manager asks you the status of your test work and what you think the next steps should be. Please provide him an overview based on the work you performed, including anything you think he should communicate to the client, and a print out of your MUS Extrapolation Report page (This piece should be completed in a formal memo). The first portion of the memo should be a recap of the overall sampling process and your assessment of this client's (Wealthy Watches) accounts receivable population. You may then wish to move on to your ultimate sampling procedure, the results of your testing/extrapolation, and finally next steps. Your discussion of next steps should include recommendations as to what action the client may need to take and/or possible adjustments to the audit plan. Since ultimately this test was designed to support the existence of the accounts receivable balance, you should be certain to discuss whether you feel that management's assertion is supported. Remember, per the PCAOB "if you didn't document it, you didn't do it" so please be complete in your write up. Memo To: [Instructor's Name] - Audit Manager From: [Student Name(s)] - Audit Staff Date: [Date] Re: Wealthy Watches Inc. - Accounts Receivable Testing Guiding Questions for your Memo - How did you ensure completeness of the population? What were your concerns about the population prior to testing? How does your sampling method help to address those concerns (i.e., statistical sampling, MUS)? What are the results of your testing after extrapolating the errors identified? The results of my testing after extrapolating the errors identified are What does this mean for your conclusions on the existence of the population? What are your recommendations for next steps and outstanding concerns that you might want the engagement team to follow up on?