Kilauan Permata Berhad (KPB), a diversified manufacturer, has five divisions that operate throughout Malaysia. Harris is the general manager of the Fabricator Division which produces a variety of standardized parts for small appliances. He has been the general manager for the last seven years, and each year he has been able to improve the profitability of the division. Last year, a new competitor has entered Fabricator's markets and has offered substantial price reductions in order to gain market share. Harris was very concerned because, if profitability is not maintained, his salary and bonus will be affected. In search for some quick solutions, Harris discovered that one way to make the division more profitable is to manipulate inventory. Harris found that by increasing inventory by two percent, income could be increased by five percent. Due to the weak controls of inventory, Harris was able to add two fictitious count sheets worth RM220,000, during the physical inventory, even though the auditors were present and were observing the physical inventory. A sianificant amount of inventory was stored in racks that filled the warehouse; because of their height and the difficulty of test counting them, Harris was able to cover the overstatement with ease. After the count was completed, Harris also added four additional count sheets that added a further RM350,000 to the stated inventory. Harris notified the auditors of the "omission" of the sheets and convinced them that they represented overlooked legitimate inventory. The auditors traced the items on these additional sheets to purchase invoices to verify their existence and approved the addition of the RM350,000 to the inventory. In addition, Harris altered other count sheets that have been submitted to the auditors while the auditors are away by changing unit designations (for example, six engine blocks became six "motors"), increasing quantities, and adding fictitious line items to completed count sheets. These other fictitious changes added an additional RM175,000 to the inflated inventory. None of them, which represent an overall increase of 16% in inventory over the last year's figure was detected by the duditors. Required: a) Describe FOUR (4) audit procedures to be performed BEFORE an inventory count to ensure the accuracy of the inventory count. b) Describe FIVE (5) audit procedures to be performed DURING an inventory count to ensure the accuracy of the inventory count. (4 marks) (5 marks) c) Explain THREE (3) audit procedures the auditors apparently did not follow that could have detected Harris' fraudulent increase of inventory. (6 marks) URGENT