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Jerry has been assigned to the audit of Strongbow LLC, a large, decentralized provider of soft drinks throughout the United States and Canada. This

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Jerry has been assigned to the audit of Strongbow LLC, a large, decentralized provider of soft drinks throughout the United States and Canada. This audit will be Jerry's first working with the client's inventory accounts, and so he has approached his supervisor Dana for assistance. Jerry asks Dana if the client's decentralized structure will create any problems with the audit of inventory. Which of the following are appropriate responses by Dana? (Select all that apply.) Depending on the levels of inventory stored at other locations, we may need to have another auditor check this inventory for us. The best advice here is to contact senior management and formally request written assurances pertaining to inventory stored at other locations we are unable to audit. The client's decentralized structure should not cause any problems at all, as our firm only audits a small sample of the client's inventory. Because the client has a decentralized structure and inventory is more spread out, this may raise inherent risk associated with the existence assertion for inventory.

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