Joy Ltd., a company engaged in the business of trekking essentials, appointed CA Raj as the Statutory Auditor for the year. Due to the large volume…

Joy Ltd., a company engaged in the business of trekking essentials, appointed CA Raj as the Statutory Auditor for the year. Due to the large volume of transactions of the company, the audit engagement team of CA Raj realized that it would not be feasible to audit each transaction separately during the financial year under audit. Therefore, Engagement Partner decided to apply following audit sampling techniques: Random number tables were used for selection of sample for power, telephone, and fuel charges.No structured method of sampling was used for office stationery.Transactions exceeding - 8,000 were selected for travel expenses.The first 200 sales invoices from the sales book for the month of July were selected for sales. Mr. Suresh, one of the team members, compared the salary expenses incurred by the company during the current year with those of the previous five years. He noticed a significant percentage increase in the expenses. This unusual increase raised doubts in his mind. He decided to compare such an increase in salary expenses with the increase in the number of employees. The company is having warehouse at 2 locations. CA Raj is planning to attend the physical inventory count process. The inventory includes finished products such as trekking jackets, bags, shoes etc., and raw materials like leather, cloth, chemicals, etc. Some of the inventory is also held by a third party. During a discussion among the team members regarding the sufficiency and appropriateness of audit evidence, they agreed that sufficiency is the measure of quantity of the audit evidence and appropriateness is the measure of quality of audit evidence. Joy Ltd. operates 100 stores on rented premises across the country and is in the process of expanding. Although the rent expenses have been accounted for, the auditor requested the management to provide all active rent agreements for the year under audit for detailed examination. Based on above, answer the following questions: