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To test the pricing and mathematical accuracy of sales invoices, the auditorsselected a sample of 200 sales invoices from a total of 41,600 invoices that were issued during the year under audit. The 200 invoices represented total recorded sales of P22,800. Total sales for the year amounted to P5,000,000. The examination disclosed that of the 200 invoices audited, five were not properly priced or contained errors in extensions and footings. The five incorrect invoices represented P720 of the total recorded sales, and the errors found resulted in a net understatement of these invoices by P300.
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