AUDIT

(a) In the annual audit of Erlina Berhad as at 31 December 2020, you have found the following transaction near financial year end: 1. Goods costing RM15,000 was received on 3 January 2021 and the related acquisition invoice is recorded on the same day. The invoice showed the shipment was made on 29 December 2020 on Freight on Board (FOB) destination. 2. Goods costing RM30,000 was received on 30 December 2020 and the invoice is not recorded. It was marked as consignment sales in the invoice. 3. A package of goods costing RM12,000 was left in the shipping area on the day of stock take. Based on your investigation, the customer's order was dated 27 December 2020 but it was then shipped and billed to customer on 2 January 2021. It was marked as FOB shipping point in the invoice. 4. Goods received on 3 January 2021 costing RM17,000 was entered in the acquisition journal on the same day of received. The invoice showed FOB shipping point on 29 December 2020. It was not included in inventory records because it was not in hand as at 31 December 2020. Required: State whether the goods should be included in the client's inventory and provide justification for each situation. (6 marks)