5-S (Assertions) In planning the audit of a client's inventory, an auditor derived the following specific audit objectives from the five categories of management's financial statement asser tions: 1. Inventories are properly stated at the lower of cost or market .. 2 Inventories included in the balance sheet are present in the warehouse on the balance sheet date. 3. Inventory quantities include all products, materials, and supplies on hand. 4. Liens on the inventories are properly disclosed in notes to the financial statements. 5. The client has legal title to the inventories.. 6. Inventories include all items purchased by the company that are in transit at the balance sheet date and that have been shipped to customers on consignment 7. Inventories received on consignment from suppliers have been excluded from inven- tory 8. Quantities times prices have been properly extended on the inventory listing the listing is properly totaled, and the total agrees with the general ledger balance for inventories. 9. Slow-moving items included in inventory have been properly identified and priced 10. Inventories are properly classified in the balance sheet as current assets. REQUIRED a. Identify and briefly explain the five categories of management's financial statement assertions. b. Identify the category of assertions from which each of the specific audit objectives in items through 10 above was derived