ABA7_Final.pdf Paraphrasing Tool |... CPSLearn *Dashboard N P 5 100% + lan Zulu: sport west section Mikel Mancoba: prescription south section Rodgers Jojo: novelty east section This memorandum will be my last official communication concerning the inventory count but if you wish to discuss any aspect of the count, please see me. Required: 3.1. Describe the audit procedures you will conduct when you attend the inventory count at the end of (10 marks) Shareware Litd's financial year? 3.2.1 When the auditor selects a sample of items in the warehouse and traces them to the inventory count (2 marks) sheets, is he she testing for valuation, existence or completeness? Justify your answer? 3.2.2 If the auditor's risk assessment procedures suggest that internal control in the inventor and production (6 marks) cycle is weak, he she will: a. increase his test of controls. b. increase his substantive tests. c. perform only analytical procedures. Justify your choice and explain why you rejected the other options? (2 marks) 3.2.3 To have a sound inventory internal control system, a company must have good internal controls in its acquisitions cycle and its revenue cycle. True or false? Justify. Galaxy A72 11:30