FIVE (5) PRACTICE gUESTIONS FOR YOU TO PONDER 9UESTION L Congratulations. You were just promoted to senior in your firm bib the audit department. Further, you are assigned to the audit engagement of Ibex Inc., a manufacturer of many products with manufacturing facilities in 5 states and a home office in Wayne NJ Ibex Inc. recently added new production equipment in one of it's plants spending $2,000,000, which is considered a significant if not material acquisition during 2018. You were a member of the audit team in 2017, thus you have continuity on the Ibex account a. b. You have been assigned to plan the observation of your client's physical inventory scheduled to take place September 30, 2018. It is now May 1, 2018. The client has multiple locations and is a manufacturing company. c. Requirements: 1. Prepare a bricf outline of the steps that you would take to plan the 2018 physical inventory observation 2. Prepare an audit program, in good form, using the supplied audit work program forms, for the observation (you may combine item a and item b if you like) 3. Articulate the audit objective(s) as related to the inventory observation 4. Because tou want to be as efficient and you are conscious of not wasting time and your client's fees, what other audit procedures might you consider performing when at the inventories? A brief listing is fine 5. You will also be involved in developing an audit plan for inventory pricing and compilation later on. Briefly explain the significance of the physical inventory counts conducted by the Client