Inventory Observations You are a manager with Hodges Jones & Sylvia (the Firm) and a member of the Firm's audit team for the audit of Yankee Corporation (the Company). The Company supplies raw materials for the automotive industry and maintains a significant level of inventories, the accounting for which is maintained with a perpetual inventory system. The Company has 3 locations, all of which are located in the metropolitan Detroit, Michigan area, and you are in the process of preparing to observe the Company's inventory cycle counting of its inventories on December 31, 2022. As a part of this preparation, Jacob, an experienced staff accountant is working on a memorandum for the other staff that will be participating in the observation. Required: By reference to AU-C Section 501A, Audit Evidence-Specific Considerations for Selected Items provide Jacob with a summary of those items impacting the existence and condition of the Company's inventory that he should address in his staff memorandum.