Big Tasty Bird Inc. (BTB) is a turkey farm. BTB year-end is September 30, 2018. It takes about four to six months to raise a turkey from the time the chicks hatch from their eggs. A full-grown and healthy turkey that is ready for sale can weigh anywhere between 16 and 24 lbs. Such turkeys usually sell for about $4 per lb. Turkeys are susceptible to different diseases, including turkey pox. Turkeys that get this disease stop growing, and it costs more to look after them. At full maturity, turkeys that have turkey pox end up weighing just 5 to 6 lbs. In prior years, BTB would vaccinate all of its turkeys against turkey pox. However, in 2018, due to financial pressures, management decided to “risk it” and did not vaccinate any of the birds. The decision was paying off, until in the summer of 2018, when about half of the turkeys at BTB got turkey pox.

REQUIRED

a. Based on facts depicted in the case, identify the relevant management assertion that is at most risk of being misstated:

1) Valuation

2) Cutoff

3) Existence

4) Rights and Obligations

5) Completeness

6) Classification

b. Propose an audit procedure to test the assertion you chose in Part a.