Carrie and Harper have been tasked by their supervisor to work on the audit of the inventory accounts for one of their major clients, Sage LLC. As this is the first audit of inventory accounts, they ask their supervisor for any guidance she can offer. Which of the following is the best example of such guidance? The best strategy is to request senior management provide written assurances pertaining to inventory which we can include in the audit file. As inventory is an asset account, you need to pay attention for any potential overstatements. As the client is always concerned with inventory turnover, you should lookout for manipulation of associated receivables and payables. None of these answer choices are correct. Jackson CPAs are preparing to begin the audit of Mcllwee Enterprises. During an initial meeting with the client, it was noted that the client maintains a large amount of inventory on a consignment basis. Based on this information, which of the following is true? The auditors should consider obtaining written assurances from senior management attesting to the accuracy and valuation of the inventory. The auditors should consider requesting the client perform a formal, manual count of inventory which the auditor can use as evidence. The auditors should consider issuing a qualified opinion on the client's inventory accounts due to the difficulty associated with auditing them. The auditors should consider performing procedures to test the rights and obligation assertion associated with the client's inventory