The Auditor Has Decided to Use Systematic Selection of Cash

Multiple Choice

The auditor has decided to use systematic selection of cash payments when testing the control that cheque payments are supported by a supplier's invoice, a purchase requisition and a goods received note. Each cheque comprises a sampling unit. There are 5000 cheques drawn (numbered 1-5000) and the total amount of cash payments is $10 million. The sample size is 20 and the random start is 127. Given this information, the second item selected will be item no:

A) Cheque number 5127.
B) Cheque number 627.
C) Cheque number 377.
D) Some other item number.