Doug Iceberge, senior-in-charge of the audit of Fisher Industries, has decided to test the...

Doug Iceberge, senior-in-charge of the audit of Fisher Industries, has decided to test the following two controls for Fisher’s revenue process.

1. All sales invoices are supported by proper documentation, that is, a sales order and a shipping document.

2. All sales invoices are mathematically correct. Iceberge has decided to use a nonstatistical sampling approach based on the following judgments for each control and has judgmentally decided to use a sample size of 50 sales invoice packets.

After completing the examination of the 50 sample items, Iceberge noted one deviation for control 1 and two deviations for control 2.

Required:

What should Iceberge conclude about each control? Justify your answer.