Your client is a manufacturer of handheld tools that employs a sales force to market the tools to retail hardware stores. You plan to use substantive analytical procedures to gather persuasive evidence about the reasonableness of commissions expense. The visualization titled "Average Commission Rate per Customer" has sales and commissions expense data. You can determine whether the relationship between commissions and sales makes sense. If it does, that suggests that commissions expense is fairly stated. The commission policy of the client is as follows: For sales greater than $75,000, commission is 3.75% For sales greater than $50,000, but less than $75,000, commission is 2.5% For sales greater than $25,000, but less than $50,000, commission is 1.25% For sales less than $25,000, commission is 0.5% You can open the Tableau file in this problem statement with Tableau Desktop software. If you do not have a version of Tableau Desktop, you can open the file with Tableau Reader. Tableau Reader is a free download that allows you to open visualizations built with Tableau Desktop. To find a free download of Tableau Reader on the Tableau website, search for "Tableau Reader" in your internet browser, or click here. Given the policy, what do you believe about the reasonableness of the commission rate given the visualization of average commission? There is not enough information to make a determination. O Commissions are overstated due to the extremely large values of average commission rate. The average commissions and the range of average commission suggest that commissions expense is fairly stated. O Commissions do not span the expected range, so commissions are understated. Your client is a manufacturer of handheld tools that employs a sales force to market the tools to retail hardware stores. You plan to use substantive analytical procedures to gather persuasive evidence about the reasonableness of commissions expense. The visualization titled "Average Commission Rate per Customer" has sales and commissions expense data. You can determine whether the relationship between commissions and sales makes sense. If it does, that suggests that commissions expense is fairly stated. The commission policy of the client is as follows: For sales greater than $75,000, commission is 3.75% For sales greater than $50,000, but less than $75,000, commission is 2.5% For sales greater than $25,000, but less than $50,000, commission is 1.25% For sales less than $25,000, commission is 0.5% You can open the Tableau file in this problem statement with Tableau Desktop software. If you do not have a version of Tableau Desktop, you can open the file with Tableau Reader. Tableau Reader is a free download that allows you to open visualizations built with Tableau Desktop. To find a free download of Tableau Reader on the Tableau website, search for "Tableau Reader" in your internet browser, or click here. Given the policy, what do you believe about the reasonableness of the commission rate given the visualization of average commission? There is not enough information to make a determination. O Commissions are overstated due to the extremely large values of average commission rate. The average commissions and the range of average commission suggest that commissions expense is fairly stated. O Commissions do not span the expected range, so commissions are understated
