You are the audit partner in the following material scenario:

The audit client, a winery located in the Margaret River region produces wines that are sold throughout Australia via distribution centres in Perth and Sydney. A significant portion (approximately 60%) of the inventory on hand at year end is stored in the Perth distribution centre. Perth has been declared a hotspot and you are unable to visit the distribution centre and attend the inventory count.

Required: 

Analyse and explain how the situation would affect your audit opinion.  

Answer rating: 100% (QA)

It will be difficult for the auditor to gather enough suitable audit evidence to back up the invento... View the full answer