$(2$ points$)$ Franklin CPS is currently completing the audit of Liberty Enterprises, a regional distributor of

sheet metal and other building supplies in the midwestern United States. The CPA firm has noted that the client

maintains a wide range of inventory, with varying levels of inventory kept in stock for each type. Which of the

following procedures would be most appropriate for the CPA firm to identify slow$-$moving inventory?

A$)$ The auditors should consider adopting an audit data analytics procedure to help them identify slow$-$moving

inventory as they audit the valuation assertion associated with inventory.

B$)$ The auditors should consider formally requesting written assurances from senior manalgement as to which

inventory items are taking the longest to sell. This will assist the auditors with the cutoff assertion.

C$)$ The auditors should consider auditing a representative cross sample of inventory types and attempt to

calculate an average inventory turnover ratio. This average can then be compared to industry averages.

D$)$ The auditors should consider deferring identification of slow$-$moving inventory to the internal audit function.

The internal auditors are more familiar with the client, and thus are more likely to accurately determine which

inventory types are slowest moving.