4 Page oto ZOOM + You are the audit manager in charge of the audit of Westcombe Pic, a UK based company, involved in the manufacture of specialist sport cars. The company has a factory and administrative offices in South East England. The company has been restructured owing to a downturn in business and currently the accounts department consists of a Finance Director, a fully qualified accountant, who is assisted by an accounts manager who is a part qualified ACCA, and an accounts assistant You are involved with the inventory count at the year end and have ascertained the following: 1. The inventory consists of fully completed and partly completed cars. 2. Because of the lack of accounts staff, the company has employed the services of a local employment agency to obtain the staff for the inventory count. 3. You have noticed from your review of the supplier statements that a major supplier of engine parts namely Speedy Components Ltd, have changed the terms of their contract such that an additional clause has been inserted to the effect that all parts supplied to Westcombe Plc remain the property of Speedy Components Lid until fully paid for. When you mentioned this to the Finance Director, he replied his makes no difference to the financial statements because we always pay on time and have used this company for a number of years". 4. You note from previous parking papers that there have been problems with the inventory count in relation to some of the work in progress where partly completed cars were being treated as completed for sale. Required: (a) In the context of this scenario, write a letter to the Finance Director fully explaining the position with regard to the additional clause inserted by Speedy Components Ltd. (4 marks) (b) In the context of this scenario, describe and explain five audit procedures that you would adopt during the inventory count (Note: you should develop the scenario as appropriate to illustrate your answer). (10 marks) (c) In the context of this scenario, describe three audit procedures that you would adopt after the inventory count (6 marks)