(b) Stock valuationthe audit of stock valuation identified two issues; 0) (ii) Use of LIFO basisthe company used the LIFO basis of valuation of closing inventories. Had the client used the FIFO basis of valuation, the value of closing inventories would be increased from $2,000,000 to $2,500,000. Provision for stock obsolescencethe client has failed to make any provision in respect of stock obsolescence. The audit work has raised serious questions about the valuation of the company's spare parts stock. The auditors were not able to Cluantify a provision. The total value of the spare parts stock is $300,000