Answer the required parts

Question - 2 15Marks Assertion 1: Vaiuotion of inventory Evidence: I. Year-end line-by-Iine listing from client's inventory system ll. Agreeing a sample of items to purchase invoices III. Tracing items to their post year-end sales value Assertion 2: Existence of inventory Evidence: I. Enquiry of client management ll. Observation of year-end inventory count Assertion 3: Completeness of recording of purchases Evidence: I. Enquiry of client management II. Reperformance of sequence check of posting of purchase invoices Required: For each of the above assertions, discuss the relative merits of the different sources of evidence suggested. Question - 3 10Marks You are employed by Ticker and Co, a firm of certified accountants. Giffnock Corp is a new audit client recently taken on by the firm. Giffnock Corp is an importer and wholesaler of specialist computer hardware. During the year the company's chief accountant resigned and in the three months leading up to the appointment of her replacement, no checking had been performed on the monthly reconciliations of the bank account and the receivables and payables ledgers. Required {a} From the scenario, identify examples of inherent risk and control risk, clearly explaining the nature of any misstatements that might arise in the financial statements. {b} From the scenario, identify any potential detection risk, and explain how the firm could minimise this risk