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Your co-worker, Alan Taylor, has recently begun working for your audit firm and wants your...

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Accounting

Your co-worker, Alan Taylor, has recently begun working for your audit firm and wants your advice regarding the results of his tests of purchase transactions that he is currently undertaking for one of his clients. Alan's selections were random and were separated into 3 stratums based on 3 seasons (closed for the winter months), Stratums A though C. Errors found were respectively $7,930;$3,290,$8,600. The total purchases for each season were $101,170;$41,990 and $62,840.
Are the errors noted material if the tolerable error was set at $40,000? What if it was set at $20,000? Explain your answer.
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