One of the audit clients of Brown and Brown, CPAs, is We-Fit Manufacturing Company, makers of shirts, sweaters, and other clothing items. The finished goods inventory consists of merchandise placed in hundreds of sealed boxes on the warehouse floor. The client's inventory count consists of a count of boxes that are supposed to contain a standard number of shirts or sweaters. The only way the auditors can be certain about the contents of the boxes is to break them open and count the pieces of clothing. They do not wish to use this method of verification except on a few selected boxes.
Required:

a. What criterion would you use in deciding how many boxes to open, if any, during the inventory observation?

b. What are the possible legal implications associated with a massive number of empty boxes?

c. Would you seek extra audit evidence on the validity of inventory simply as a result of the client's count procedure? If so, what types?