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Description You are part of the YU BUSI 3443 Audit team. During the audit of Metal Press Corp. for the calendar year 2020, you noticed

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Description You are part of the YU BUSI 3443 Audit team. During the audit of Metal Press Corp. for the calendar year 2020, you noticed that the company produces aluminum cans at the rate of about 40 million units annually. Upon completing a plant tour, you noticed a large stockpile of raw aluminum in storage. Your inventory observation and pricing procedures showed this stockpile to be the raw materials inventory of 400 tonnes valued at $240,000 (average cost). Inquiry with the production chief yielded the information that 400 tonnes was about a four-month supply of raw materials. Suppose you learn that Metal Press had executed a non-cancellable long-term purchase contract with All Purpose Aluminum Company to purchase raw materials on the following schedule: DELIVERY DATE QUANTITY (TONNES) TOTAL PRICE January 30, 2021 $300,000 500 June 30, 2021 700 $420,000 1,000 $500,000 December 30, 2021 Because of recent economic conditions, principally a decline in the demand for raw aluminum and a consequent oversupply, the price stood at $400 per tonne (1 tonne = 1,000 kilograms) as of January 15, 2021. Commodities experts predict that this low price will prevail for 12-15 months or until there is a general Because of recent economic conditions, principally a decline in the demand for raw aluminum and a consequent oversupply, the price stood at $400 per tonne (1 tonne = 1,000 kilograms) as of January 15, 2021. Commodities experts predict that this low price will prevail for 12-15 months or until there is a general economic recovery. Required (max 1 page, single-spaced, bullet points are acceptable): 1. Describe the procedures you would employ to gather evidence about this contract (including its initial discovery). 2. As Metal Press's auditor, which of the facts given in the case would you have to discover for yourself based on your understanding of the auditee's business, environment, and risks? 3. Discuss the effect this contract has on the financial statements

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