It is early December 2020, and you approach the Chief Financial Officer of Pitscottie Limited, a trading company, to ask him to send the 31 December year end inventory count instructions for review. He informs you that the directors wish to rely on inventory records this year to determine year end quantities.

Comment on this situation. What would be your response to the CFO? You may assume that the inventory figure is significant to other figures in the financial statements.