During the initial stages of the audit of Berkeley Company, the audit manager with day-to-day responsibility for the engagement is discussing how the audit of the inventory accounts should be handled with an audit staff associate. As the audit manager is much more experienced, he is attempting to give the staff associate some ideas o areas to consider checking. Which of the following would represent potential issues related to the audit of inventory that the staff associate may wish to check?

a) the staff associate is likely to examine the valuation of inventory to ensure it has been recorded at the correct value, as well as checking to make sure that all decreases in inventory can be matched to the pertinent accounts payable

b) The staff associate is likely to determine if shipments of inventory out of the warehouse received the appropriate authorizations, as well as checking a sample of documents to ensure the completeness of documents supporting inventory.

c) The staff associate is likely to examine payables invoices related to inventory shipments to clients, and attempt to match them with sales order

d) The staff associate may wish to audit whether the inventory is obsolete and may need a valuation adjustment. If this turns out to be the case, then the auditor will request management to obtain updated values for inventory accounts and make any necessary adjustments.